Analog Devices TodayADIAnalog Devices$221.91 -5.59 (-2.46%) 52-Week Range$154.99▼$244.14Dividend Yield1.66%P/E Ratio51.85Price Target$245.64Add to WatchlistAnalog Devices NASDAQ: ADI is not out of the weeds, and it will take time to recover fully, but the bottom is in for the semiconductor business, and the rebound is underway. The takeaway from the FQ3 results is that sequential growth persists, and improving client inventory and order volumes point to YoY growth resuming by FQ1 2025. This means investors ...

Analog Devices, Inc. ADI posted better-than-expected third-quarter financial results on Wednesday.The company's revenue declined 25% year-on-year to $2.31 billion, beating the analyst consensus estimate of $2.27 billion. Adjusted EPS of $1.58 beat the analyst consensus estimate of $1.50."Improved customer inventory levels and order momentum across most of our markets position us to grow again sequentially in our fourth quarter, increasing our confidence that we are past the trough of this cycle. However, ec ...

draganab/E+ via Getty Images Analog Devices (NASDAQ:ADI) reported its third quarter FY24, sending shares higher after management announced a beat on top and bottom lines with sequential growth after four quarters of sequential sales decline. The company reported sales up roughly 7% Q/Q and down 25% Y/Y to $2.31B versus estimates of $2.27B and adjusted EPS of $1.58, ahead of estimates of $1.50. The real surprise was from management's outlook for Q4; the company expects sales of $2.40B, +/- $100M, for 4% ...

Why did Analog Devices' shares spike and then settle on Wednesday morning?Shares of Analog Devices (ADI 2.92%) jumped as much as 6% higher on Wednesday morning. The maker of high-performance analog and mixed-signal chips peaked at 10:20 a.m. ET and backed down to a 2.2% gain in the afternoon. The stock jumped as Analog Devices reported analyst-stumping third-quarter results and in-line guidance for the next quarter. It backed down when management provided cautious market analysis on the earnings call.Third- ...

Analog Devices Inc. (ADI) has reported third-quarter fiscal 2024 adjusted earnings of $1.58 per share, which surpassed the Zacks Consensus Estimate by 5.3%. The bottom line declined 37% from the year-ago quarter.Revenues of $2.31 billion beat the Zacks Consensus Estimate of $2.27 billion. However, the top line fell 25% from the year-ago quarter.Softness in the industrial, communications and automotive end-markets led to the year-over-year decline in the top line.Revenues by End MarketsIndustrial: The market ...

Financial Data and Key Metrics - Q3 revenue was $2.31 billion, up 7% sequentially but down 25% year-over-year [16] - Operating margin was 41.2%, exceeding the high end of the outlook [17] - EPS was $1.58, near the high end of the outlook [17] - Gross margin improved to 67.9%, up 120 basis points sequentially [17] - Free cash flow for the trailing 12 months was $2.9 billion, representing 30% of revenue [18] Business Line Performance - Industrial segment represented 46% of revenue, up 6% sequentially but down 37% year-over-year [16] - Automotive segment represented 29% of revenue, flat sequentially but down 8% year-over-year [16] - Communications segment represented 12% of revenue, up 10% sequentially but down 26% year-over-year [16] - Consumer segment represented 14% of revenue, up 29% sequentially and increased year-over-year for the first time since 2022 [16] Market Performance - Industrial market showed signs of recovery, with strong growth expected in 2025 [14] - Aerospace and Defense remained resilient, with potential for double-digit revenue growth in 2025 [10] - Automation recovery was slow, but long-term growth potential remains strong [11] - Energy Transmission and Distribution saw modernization efforts, with potential to expand returns by over $10 billion [13] Strategic Direction and Industry Competition - The company is investing in high-performance analog solutions to leverage secular trends and drive long-term growth [15] - Industrial market recovery is expected to drive robust growth in 2025 [14] - The company is well-positioned to capitalize on opportunities in AI, robotics, and energy management [9][12][13] Management Commentary on Operating Environment and Future Outlook - Management believes Q2 marked the cyclical bottom, with improved customer inventory levels and order momentum [5] - Economic and geopolitical conditions are limiting a sharper recovery, but the company remains optimistic for 2025 [5][19] - Industrial customers are showing strong optimism for 2025, supporting the company's growth outlook [35] Other Important Information - Inventory decreased by $51 million sequentially, with days declining to 178 from 192 [18] - The company plans to return 100% of free cash flow to shareholders over the long term [18] - Q4 revenue is expected to be $2.4 billion, with EPS of $1.63 [19] Q&A Session Summary Question: Mixed environment and visibility [22] - Management is confident that Q2 was the cyclical bottom, with lean channel inventory and a healthy backlog [23] - Industrial market recovery is expected to continue, driven by strong design wins and customer inventory improvements [24] Question: Automotive vs. Industrial trajectory [25] - Automotive is experiencing a softer market, with inventory digestion expected to continue into Q4 [26] - The cycle depth in automotive is not expected to be as severe as in industrial [28] Question: Regional differences in automotive market [29] - The automotive market weakness is consistent across all regions, including China [30] Question: Sequential growth into Q1 [32] - Seasonal decline is expected in Q1, with a bounce back in Q2 [33] - Industrial market performance will be a key driver of growth [35] Question: Bookings and seasonal trends [36] - Bookings growth was seen in industrial, consumer, and communications, but automotive orders declined [38] - Seasonal trends are expected to return, with Q1 likely to show a decline [34] Question: Inventory and utilization rates [39] - Utilization rates and gross margins have bottomed, with improvements expected in Q3 and Q4 [40] - Internal utilization rates are improving, but remain below normal levels [43] Question: Segment guidance for Q4 [45] - Consumer is expected to grow by about 10%, industrial by high single digits, and automotive to decline by low single digits [46] Question: OpEx trends [47] - OpEx is expected to increase by around 5% sequentially in Q4, driven by merit increases [48][50] Question: Inventory digestion in automotive [51] - Automotive inventory digestion is ongoing, with production cuts impacting inventory levels [52] - The worst of inventory digestion is behind in industrial, consumer, and communications markets [53] Question: Industrial bookings visibility [54] - Industrial bookings visibility is consistent, with growth across most sub-elements except automation [55] Question: China market performance [56] - China bookings showed double-digit growth in industrial, auto, and communications, offset by a decrease in consumer [57] Question: Gross margin drivers [58] - Gross margin is impacted by favorable mix and stable pricing, with utilization improvements contributing to margin expansion [59][60]

Core Insights - Analog Devices reported earnings per share (EPS) of $1.58, exceeding the analyst estimate of $1.50 [1] - The company achieved revenue of $2.31 billion, which is 1.85% higher than the analyst estimate of $2.27 billion [1] Financial Performance - Earnings per share (EPS): $1.58, above the expected $1.50 [1] - Revenue: $2.31 billion, surpassing the forecast of $2.27 billion by 1.85% [1]

Key TakeawaysAnalog Devices beat third-quarter profit and sales estimates as it sees the slump in the chip sector ending.The company posted sequential gains in revenue from its Industrial, Consumer, and Communications units.CFO Richard Puccio said better customer inventory levels and gains in orders point to a recovery. Analog Devices (ADI) shares advanced in intraday trading Wednesday after the semiconductor maker posted better-than-expected results as it benefited from a rebound in the industry. The compa ...

Analog Devices (ADI) reported $2.31 billion in revenue for the quarter ended July 2024, representing a year-over-year decline of 24.8%. EPS of $1.58 for the same period compares to $2.49 a year ago.The reported revenue represents a surprise of +1.69% over the Zacks Consensus Estimate of $2.27 billion. With the consensus EPS estimate being $1.50, the EPS surprise was +5.33%.While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine t ...

Core Insights - Analog Devices (ADI) reported quarterly earnings of $1.58 per share, exceeding the Zacks Consensus Estimate of $1.50 per share, but down from $2.49 per share a year ago, indicating a 36.6% year-over-year decline [1] - The company achieved revenues of $2.31 billion for the quarter ended July 2024, surpassing the Zacks Consensus Estimate by 1.69%, but down from $3.08 billion in the same quarter last year, reflecting a 25% decrease [1] - The stock has seen a price increase of approximately 12.6% since the beginning of the year, compared to a 17.3% gain in the S&P 500 [2] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $1.60, with expected revenues of $2.36 billion, while the estimate for the current fiscal year is $6.24 on $9.3 billion in revenues [4] - The trend of estimate revisions for Analog Devices has been unfavorable, resulting in a Zacks Rank of 4 (Sell), suggesting expected underperformance in the near future [4] Industry Context - The Semiconductor - Analog and Mixed industry is currently ranked in the bottom 10% of over 250 Zacks industries, indicating potential challenges for stocks within this sector [5] - Another company in the same industry, Semtech (SMTC), is expected to report quarterly earnings of $0.10 per share, reflecting a year-over-year decline of 9.1%, with revenues anticipated to be $212.42 million, down 10.9% from the previous year [5][6]