Financial Performance - Revenue for the second quarter of fiscal 2025 was $2.64 billion, representing a 22% year-over-year increase[4] - Gross margin increased to $1.61 billion with a gross margin percentage of 61.0%, up 630 basis points from the previous year[4] - Operating income rose to $678 million, reflecting a 76% increase year-over-year, with an operating margin of 25.7%, up 780 basis points[4] - Diluted earnings per share (EPS) for the quarter was $1.14, an 87% increase compared to $0.61 in the same quarter last year[4] - Net income for the six months ended May 3, 2025, was $961,086, up from $764,969 in the same period last year, reflecting a 26% increase[27] - Operating income for the six months ended May 3, 2025, was $1,169,257, compared to $972,087 for the same period in 2024, representing a 20% increase[30] - Adjusted diluted EPS for the six months ended May 3, 2025, was $3.48, compared to $3.13 in the same period last year[32] Cash Flow and Shareholder Returns - The company generated operating cash flow of $3.9 billion and free cash flow of $3.3 billion over the trailing twelve months, representing 39% and 34% of revenue, respectively[3] - The company returned $0.7 billion to shareholders through dividends and stock repurchases during the second quarter[3] - Free cash flow for the trailing twelve months was $3,293,589, which is 34% of revenue, indicating strong cash generation capabilities[33] Future Projections - For the third quarter of fiscal 2025, the company forecasts revenue of $2.75 billion, with an expected operating margin of approximately 27.2%[6] - The adjusted diluted EPS is projected to be $1.92 for the third quarter, reflecting a strong outlook for continued growth[6] - The company projects revenue of $2.75 billion for the three months ending August 2, 2025, with an operating margin of 27.2%[35] Market Demand and Growth - Bookings accelerated across all end markets and regions, indicating a cyclical recovery and strong demand signals[2] - The automotive segment revenue grew by 24% year-over-year to $849,505 for the three months ended May 3, 2025, indicating strong demand in this market[30] Expenses and Investments - Research and development expenses increased to $441,837 for the three months ended May 3, 2025, up from $354,862 in the same period last year, highlighting the company's commitment to innovation[30] - Capital expenditures for the three months ended May 3, 2025, were $90,268, indicating ongoing investment in growth initiatives[33] - The company reported acquisition-related expenses of $220,277 for the three months ended May 3, 2025[32] Asset Management - Total current assets as of May 3, 2025, were $5,588,537, compared to $5,484,654 as of November 2, 2024, showing a slight increase in liquidity[25] - The company’s total assets decreased to $47,344,487 as of May 3, 2025, from $48,228,277 as of November 2, 2024, indicating a reduction in overall asset base[25] - Cash and cash equivalents at the end of the period were $2,376,235, an increase from $1,991,342 at the end of the previous year[27] Taxation - The effective income tax rate for the six months ended May 3, 2025, was 9.5%, slightly higher than 8.7% in the previous year[32] - The projected tax rate for the upcoming quarter is estimated to be between 11% and 13%[35]

Financial Performance - Analog Devices, Inc. reported revenue of $2.64 billion for the second quarter of fiscal 2025, representing a 22% increase year-over-year from $2.16 billion in the same quarter of the previous year [3][31] - The gross margin for the quarter was $1.61 billion, with a gross margin percentage of 61.0%, up from 54.7% a year ago, reflecting a 630 basis points improvement [3][33] - Operating income increased by 76% to $678 million, with an operating margin of 25.7%, compared to 17.9% in the prior year [3][33] - Diluted earnings per share (EPS) rose 87% to $1.14, compared to $0.61 in the same quarter last year [3][33] Adjusted Results - Adjusted gross margin was $1.83 billion, with an adjusted gross margin percentage of 69.4%, up from 66.7% year-over-year [3][33] - Adjusted operating income was $1.09 billion, with an adjusted operating margin of 41.2%, compared to 39.0% in the previous year [3][33] - Adjusted diluted EPS for the quarter was $1.85, a 32% increase from $1.40 in the same quarter last year [3][34] Cash Flow and Shareholder Returns - The company generated $819 million in net cash from operating activities, representing 31% of revenue, and $729 million in free cash flow, or 28% of revenue [3][29] - Analog Devices returned $740 million to shareholders through dividends and stock repurchases during the second quarter [7][29] - A quarterly cash dividend of $0.99 per share was declared, payable on June 18, 2025 [9] Market Outlook - For the third quarter of fiscal 2025, the company forecasts revenue of $2.75 billion, with an expected operating margin of approximately 27.2% and adjusted operating margin of approximately 41.5% [5][36] - Reported EPS is anticipated to be $1.23, with adjusted EPS expected to be $1.92 [5][36] Revenue Trends by End Market - Revenue growth was observed across all end markets, with industrial revenue at $1.16 billion (44% of total revenue), automotive at $849 million (32%), consumer at $318 million (12%), and communications at $315 million (12%) [31][32] - Year-over-year growth rates for these segments were 17% for industrial, 32% for automotive, 12% for consumer, and 32% for communications [31][32]

Earnings Report - Analog Devices, Inc. is set to release its second-quarter earnings results on May 22, with analysts expecting earnings of $1.70 per share, an increase from $1.40 per share in the same period last year [1] - The company is projected to report quarterly revenue of $2.51 billion, compared to $2.16 billion a year earlier [1] Stock Performance - Analog Devices shares fell 1% to close at $222.22 on Wednesday [2] Analyst Ratings - Stifel analyst Tore Svanberg maintained a Buy rating and raised the price target from $225 to $248 [8] - Citigroup analyst Christopher Danely maintained a Buy rating and increased the price target from $235 to $260 [8] - Cantor Fitzgerald analyst C J Muse maintained a Neutral rating and raised the price target from $230 to $250 [8] - Oppenheimer analyst Rick Schafer maintained an Outperform rating and boosted the price target from $225 to $265 [8] - UBS analyst Timothy Arcuri maintained a Buy rating but reduced the price target from $300 to $295 [8]

Group 1 - The company "Chip Superhero" has a 1,600 square meter intelligent chip storage base with over 1,000 stock models and around 100 brands, totaling 50 million chips in stock valued at over 100 million [1] - The company operates an independent laboratory in Shenzhen, ensuring quality control (QC) for each material [1] - The company serves over 8,000 users by matching inventory releases with demand and facilitating the buying and selling of surplus materials [2] Group 2 - The article highlights the sale of advantageous materials at special prices, listing specific brands, models, quantities, and years of production [2] - The article suggests that companies should focus on surplus materials to generate revenue [3]

Company Overview - Analog Devices (NASDAQ: ADI) is set to announce its Q2 FY'25 earnings on May 22, 2025, with consensus revenue estimates of $2.51 billion, reflecting a 16% year-over-year increase, and anticipated earnings of approximately $1.70 per share, up from $1.40 in the same period last year [1] - The company currently has a market capitalization of $113 billion, with revenue for the past twelve months at $9.3 billion, operating profits of $2.0 billion, and net income of $1.6 billion [2] Industry Insights - The semiconductor cycle appears to be recovering, with expected increased demand from the industrial and automotive sectors, as well as data centers [1] - Gross margins for Analog Devices may improve due to better volumes and alleviated inventory concerns [1] Earnings Performance - Historical data indicates that Analog Devices has a slightly higher likelihood of a positive stock move after earnings announcements, with positive one-day (1D) returns occurring approximately 53% of the time over the last five years, increasing to 64% over the last three years [5] - The median of the 10 positive returns is 5.4%, while the median of the 9 negative returns is -1.6% [5]

Core Viewpoint - Analog Devices (ADI) is expected to report a strong Q2 performance with a revenue growth of 16.3% year-over-year, reaching $2.51 billion, contrasting with a 33.8% decline in the same period last year [1] Group 1: Financial Performance Expectations - The adjusted earnings per share (EPS) for Analog Devices is projected to be $1.70 [1] - In the previous quarter, Analog Devices exceeded analyst expectations with a revenue of $2.42 billion, a year-over-year decline of 3.6% [1] - Analysts expect Q2 revenue to reach $2.51 billion, a year-over-year increase of 16% and a quarter-over-quarter increase of 3.4% [2] Group 2: Market and Sector Analysis - Morgan Stanley highlights strong growth in the industrial and automotive sectors for Analog Devices, despite uncertainties related to semiconductor tariffs [2] - The industrial sector revenue is anticipated to be $1.15 billion, with a year-over-year growth of 15.1%, while the automotive sector is expected to generate $0.75 billion, growing 12.6% year-over-year [2] - Citigroup has raised its target price for Analog Devices from $235 to $260, citing strong order growth in the analog chip market, particularly in the industrial sector [3] Group 3: Competitive Positioning - Analog Devices has a higher exposure to the industrial market (45% of revenue) compared to Texas Instruments (34%), but may adopt a more conservative financial outlook due to tariff uncertainties [3] - Morgan Stanley considers Analog Devices to be one of the most defensive analog chip companies due to its high-quality business mix and robust profit margins [3] - Cantor Fitzgerald maintains a "neutral" rating but has increased its target price from $230 to $250, expecting the company to deliver an "outperforming report" [4]

Core Viewpoint - Analog Devices, Inc. (ADI) is expected to report strong second-quarter fiscal 2025 results, with projected revenues of $2.50 billion, reflecting a 15.9% increase year-over-year, and adjusted earnings per share of $1.68, indicating a 20.7% rise from the previous year [1][2]. Group 1: Financial Expectations - ADI anticipates revenues of $2.50 billion (+/- $100 million), aligning with the Zacks Consensus Estimate, which also stands at $2.50 billion [1]. - The consensus estimate for adjusted earnings per share is $1.69, with ADI projecting $1.68 (+/- 10 cents), showing a consistent outlook over the past 60 days [2]. Group 2: Performance Drivers - The second-quarter performance is likely to benefit from inventory normalization across direct and distribution channels, alongside improved bookings and lean inventory levels following the semiconductor industry's cyclical downturn [3]. - Recent U.S. tariff reductions on the Chinese market are expected to positively impact ADI's revenues, along with strong design wins in sectors such as industrial automation, healthcare, automotive, and communications [4]. - Secular growth trends in industrial automation, healthcare and surgical robotics, automotive, AI infrastructure, and high-end consumer devices are anticipated to drive ADI's top line [5]. Group 3: Challenges - Despite positive growth factors, macroeconomic challenges such as prolonged inflation and high interest rates may pose risks to ADI's performance in the upcoming quarter [5]. Group 4: Earnings Prediction Model - The current earnings prediction model indicates that ADI does not conclusively predict an earnings beat, with an Earnings ESP of 0.00% and a Zacks Rank of 3 (Hold) [6].

Group 1 - Analysts project Analog Devices (ADI) will announce quarterly earnings of $1.69 per share, a 20.7% increase year over year [1] - Revenues are expected to reach $2.5 billion, reflecting a 15.9% increase from the same quarter last year [1] - The consensus EPS estimate has remained unchanged over the last 30 days, indicating a reevaluation of initial estimates by analysts [1][2] Group 2 - Revenue by end market for Consumer is projected at $304.22 million, indicating a year-over-year change of +24.1% [4] - Revenue by end market for Communications is estimated at $280.53 million, showing a change of +16.5% from the previous year [4] - Revenue by end market for Automotive is expected to be $754.45 million, reflecting a +14.6% year-over-year change [5] Group 3 - Revenue by end market for Industrial is estimated at $1.14 billion, indicating a +12.6% change from the year-ago quarter [5] - Analog Devices shares have increased by +28.8% in the past month, outperforming the Zacks S&P 500 composite's +13.1% move [5] - ADI holds a Zacks Rank 3 (Hold), suggesting it is expected to closely follow overall market performance in the near term [5]

Core Insights - 3G Capital's total market value for Q1 2025 is $348 million, a decrease of 2.48% from the previous quarter's $349 million [1][2] - The firm added 5 new stocks, increased holdings in 6 stocks, reduced holdings in 4 stocks, and completely sold out of 5 stocks during the quarter [1][2] - The top ten holdings account for 91.96% of the total market value [1][2] Holdings Summary - The largest holding is Meta (META.US) with 85,000 shares valued at approximately $48.99 million, representing 14.07% of the portfolio [3][4] - Analog Devices (ADI.US) is the second largest holding with 200,000 shares valued at $40.33 million, making up 11.58% of the portfolio [3][4] - Pinduoduo (PDD.US) ranks third with 300,000 shares valued at $35.51 million, accounting for 10.20% of the portfolio [3][4] - MercadoLibre (MELI.US) is fourth with 16,000 shares valued at approximately $31.21 million, representing 8.96% of the portfolio [3][4] - At the fifth position is Atour (ATAT.US) with 1,050,000 shares valued at about $29.77 million, making up 8.55% of the portfolio [3][4] Trading Activity - The firm initiated positions in BBB Foods (TBBB.US), Intuit (INTU.US), Monday (MNDY.US), Workday (WDAY.US), and Klaviyo (KVYO.US) [5][6] - The firm completely exited positions in BILL Holdings (BILL.US), Uber (UBER.US), Broadcom (AVGO.US), Sprout Social (SPT.US), and Affirm Holdings (AFRM.US) [5][6] - The top buys by percentage change in the portfolio include Carvana (CVNA), Analog Devices (ADI), Amazon (AMZN), BBB Foods (TBBB), and Intuit (INTU) [7] - The top sells by percentage change include BILL Holdings (BILL), Uber (UBER), Broadcom (AVGO), and Pinduoduo (PDD) [6][7]

Core Insights - The company "Chip Superhero" operates a 1,600 square meter intelligent chip storage base with over 1,000 stock models and around 100 brands, holding a total of 50 million chips valued at over 100 million [1] Group 1 - The company has an independent laboratory in Shenzhen where each material undergoes QC inspection [1] - It serves over 8,000 users by providing inventory release, demand matching, and trading of surplus materials [3] Group 2 - The company is actively seeking to purchase specific chip models, including TE 2337019-1 (60K), NXP MIMXRT1064CVL5B (80K), and Infineon IKD10N60RATMA1 (50K) [2]