Sundry Photography In our previous coverage of Analog Devices, Inc. (NASDAQ:ADI), we examined the attributes of Maxim acquisition to ADI’s exceptional growth (64.2%) in 2022. Firstly, we expected ADI's analog market share to reach 17.2% in 2022, tying Texas Instruments for the highest in the industry. Secondly, we determined Maxim’s impact in ADI’s automotive segment, which drove over 100% growth in its automotive BMS portfolio. In addition, we calculated that Maxim was directly responsible for 41.7% of ...

WILMINGTON, Mass. and MUNICH, March 6, 2024 /PRNewswire/ -- Analog Devices, Inc. (Nasdaq: ADI) and the BMW Group (Nasdaq: BMWYY) today announced an early adoption of E²B™, ADI's 10BASE-T1S Ethernet to the Edge bus technology within the automotive industry. Automotive Ethernet connectivity is a key enabler of new, zonal architectures in automotive design and supports automotive megatrends such as software-defined vehicles. The BMW Group will be a leading original equipment manufacturer (OEM) to implement the ...

Arthit Pornpikanet/iStock via Getty Images This week features a tremendous 27 new dividend increases, beating the already stellar week last week (which had 21). These include Dividend King Kimberly-Clark (KMB) and three champions. Kimberly-Clark extends its 52-year streak with a 3.4% increase. The companies have an average increase of 7% and a median of 5.9%. Read on for the complete lists! As an investor utilizing a dividend-growth strategy, I always look forward to receiving dividends, especially increase ...

The U.S. stock market has been fluctuating since the beginning of the year after a sharp rally in 2023. The euphoria surrounding technology stocks evaporated as the yield on the benchmark 10-Year U.S. Treasury Note returned northward, trading well above 4%.This was primarily owing to the uncertainty regarding the timing of the Fed’s first cut in the benchmark interest rate. Recently, several key Fed FOMC members said that although they believe that the rate hike regime is over, they are yet to be convinced ...

Analog Devices Inc (NASDAQ: ADI) just announced to have double downed on its partnership with Taiwan Semiconductor Mfg. Co. Ltd (NYSE: TSM). Shares of both firms are in the green at writing.Why did Analog expand partnership with TSMC?Copy link to sectionThe extended collaboration secures long-term wafer capacity for the multinational through Japan Advanced Semiconductor Manufacturing Inc. Kumamoto Prefecture based JASM is majority owned by TSMC. Vivek Jain – an executive vice president of $ADI said in a pre ...

Analog Devices, Inc. (NASDAQ:ADI) Q1 2024 Earnings Conference Call February 21, 2024 10:00 AM ET Company Participants Michael Lucarelli - VP, IR and FP&A Vincent Roche - CEO & Chairman Richard Puccio - CFO Conference Call Participants Joseph Moore - Morgan Stanley Stacy Rasgon - Bernstein Research Chris Danely - Citi Vivek Arya - Bank of America Merrill Lynch Harlan Sur - JPMorgan Toshiya Hari - Goldman Sachs William Stein - Truist Securities Timothy Arcuri - UBS CJ Muse - Cantor Fitzgerald Operator Good mo ...

Core Insights - Analog Devices Inc. (ADI) reported first-quarter fiscal 2024 adjusted earnings of $1.73 per share, exceeding the Zacks Consensus Estimate by 1.2%, but down 37% year-over-year [1] - Revenues reached $2.51 billion, surpassing the Zacks Consensus Estimate of $2.50 billion, but fell 23% compared to the same quarter last year [1] - The company experienced weakness in communications, consumer, and industrial markets, while automotive markets showed strong momentum [1] Revenue by End Markets - Industrial market revenues were $1.19 billion, accounting for 48% of total revenues, down 31% year-over-year, and missed the Zacks Consensus Estimate of $1.21 billion [2] - Communications market revenues were $302.57 million, representing 12% of revenues, a decrease of 37% from the previous year, and lagged behind the Zacks Consensus Estimate of $319 million [2] - Automotive market revenues totaled $739.16 million, making up 29% of revenues, up 9% year-over-year, and exceeded the Zacks Consensus Estimate of $697 million [2] - Consumer market revenues were $274.14 million, accounting for 11% of revenues, reflecting a 22% decline from the year-ago quarter, but beat the Zacks Consensus Estimate of $268 million [2] Operating Details - Adjusted gross margin contracted by 460 basis points year-over-year to 69% [3] - Adjusted operating expenses were $679.41 million, down 7.3% from the year-ago quarter, representing 27% of revenues, which is an increase of 440 basis points year-over-year [3] - Adjusted operating margin decreased by 910 basis points year-over-year to 42% in the reported quarter [3] Balance Sheet & Cash Flow - As of February 3, 2024, cash and cash equivalents were $1.3 billion, up from $958.1 million as of October 28, 2023 [4] - Long-term debt stood at $5.95 billion at the end of the first quarter, compared to $5.90 billion at the end of the previous quarter [4] - Net cash provided by operations was $1.14 billion in the reported quarter, down from $1.19 billion in the prior fiscal quarter [4] - ADI generated $916 million of free cash flow in the fiscal first quarter and returned $606 million to shareholders, with $426 million in dividends and $180 million in share repurchases [4] Guidance - For the second quarter of fiscal 2024, ADI expects revenues of $2.10 billion (+/- $100 million), below the Zacks Consensus Estimate of $2.40 billion [5] - Non-GAAP earnings are anticipated to be $1.26 (+/- $0.10) per share, compared to the consensus mark of $1.63 per share [5] - The company expects a non-GAAP operating margin of 37% (+/- 100 basis points) [5]

For the quarter ended January 2024, Analog Devices (ADI) reported revenue of $2.51 billion, down 22.7% over the same period last year. EPS came in at $1.73, compared to $2.75 in the year-ago quarter.The reported revenue represents a surprise of +0.54% over the Zacks Consensus Estimate of $2.5 billion. With the consensus EPS estimate being $1.71, the EPS surprise was +1.17%.While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street ...

Analog Devices Inc (NASDAQ: ADI) is trading down in premarket on Wednesday even though it came in slightly above Street estimates in its fiscal first quarter.This is a developing story. Figures missing below will be updated as received! Why is Analog Devices stock down today?Copy link to sectionInvestors are concerned also because the management issued muted guidance for the future. Analog Devices now forecasts $1.26 of adjusted per-share earnings on $2.10 billion in revenue.Analysts, in comparison, were at ...

[PART I — FINANCIAL INFORMATION](index=2&type=section&id=PART%20I%20%E2%80%94%20FINANCIAL%20INFORMATION) This section presents the unaudited condensed consolidated financial statements for the quarterly period ended February 3, 2024, highlighting a significant year-over-year decline in revenue and net income [Item 1. Financial Statements](index=2&type=section&id=ITEM%201.%20Financial%20Statements) This section presents the unaudited condensed consolidated financial statements for the quarterly period ended February 3, 2024, including key statements and accompanying notes Condensed Consolidated Statements of Income (Unaudited) | Indicator | Three Months Ended Feb 3, 2024 (in millions) | Three Months Ended Jan 28, 2023 (in millions) | | :--- | :--- | :--- | | **Revenue** | **$2,512.7** | **$3,249.6** | | Gross Margin | $1,473.9 | $2,124.3 | | Operating Income | $586.0 | $1,130.8 | | **Net Income** | **$462.7** | **$961.5** | | Diluted Earnings Per Share | $0.93 | $1.88 | Condensed Consolidated Balance Sheet Highlights (Unaudited) | Indicator | As of Feb 3, 2024 (in millions) | As of Oct 28, 2023 (in millions) | | :--- | :--- | :--- | | Cash and cash equivalents | $1,303.6 | $958.1 | | Inventories | $1,553.2 | $1,642.2 | | Total Assets | $48,388.5 | $48,794.5 | | Total Debt (Current + Long-term) | $6,446.0 | $6,401.5 | | Total Shareholders' Equity | $35,548.1 | $35,565.1 | Condensed Consolidated Statements of Cash Flows (Unaudited) | Indicator | Three Months Ended Feb 3, 2024 (in millions) | Three Months Ended Jan 28, 2023 (in millions) | | :--- | :--- | :--- | | Net cash provided by operating activities | $1,138.8 | $1,406.3 | | Net cash used for investing activities | ($219.1) | ($176.1) | | Net cash used for financing activities | ($574.2) | ($1,030.4) | - The first quarter of fiscal 2024 included **14 weeks of operations**, compared to 13 weeks in the first quarter of fiscal 2023[16](index=16&type=chunk) - Subsequent to the quarter's end, on February 20, 2024, the Board of Directors declared a cash dividend of **$0.92 per share**, payable on March 15, 2024, totaling approximately **$456.2 million**[48](index=48&type=chunk) [Note 7 – Revenue](index=10&type=section&id=Note%207%20%E2%80%93%20Revenue) Revenue for the quarter was **$2.51 billion**, a **23% decrease** year-over-year, with the Industrial market remaining the largest segment despite a decline, and Automotive showing growth Revenue by End Market (YoY) | End Market | Revenue (Q1'24, in millions) | % of Revenue | YoY Change | | :--- | :--- | :--- | :--- | | Industrial | $1,196.8 | 48% | (31)% | | Automotive | $739.2 | 29% | 9% | | Communications | $302.6 | 12% | (37)% | | Consumer | $274.1 | 11% | (22)% | | **Total** | **$2,512.7** | **100%** | **(23)%** | Revenue by Sales Channel | Channel | Revenue (Q1'24, in millions) | % of Revenue | | :--- | :--- | :--- | | Distributors | $1,535.2 | 61% | | Direct customers | $939.9 | 37% | | Other | $37.5 | 1% | [Note 6 – Commitments and Contingencies](index=10&type=section&id=Note%206%20%E2%80%93%20Commitments%20and%20Contingencies) The company is involved in a putative class action lawsuit related to its acquisition of Maxim Integrated Products, Inc., currently under appeal in the Delaware Supreme Court - A class action lawsuit related to the Maxim acquisition is under appeal in the Delaware Supreme Court, with arguments heard on February 14, 2024[26](index=26&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=15&type=section&id=ITEM%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses a **23% year-over-year revenue decrease** to **$2.51 billion**, attributed to broad-based demand decline, and a **52% decline in net income**, while maintaining sufficient liquidity [Results of Operations](index=15&type=section&id=Results%20of%20Operations) Revenue decreased **23% YoY** to **$2.51 billion**, driven by declines in Industrial and Communications, while gross margin percentage dropped due to lower factory utilization, leading to a **52% decrease in net income** Key Financial Metrics (Q1'24 vs Q1'23) | Metric | Q1 2024 (in millions) | Q1 2023 (in millions) | % Change | | :--- | :--- | :--- | :--- | | Revenue | $2,512.7 | $3,249.6 | (23)% | | Gross Margin % | 58.7% | 65.4% | (670 bps) | | Operating Income | $586.0 | $1,130.8 | (48)% | | Net Income | $462.7 | $961.5 | (52)% | | Diluted EPS | $0.93 | $1.88 | (51)% | - The decrease in gross margin percentage was primarily due to **lower utilization of factories** resulting from decreased customer demand and an unfavorable product mix[59](index=59&type=chunk) - Special charges of **$16.1 million** were recorded in Q1 2024 related to a business reorganization effort to align costs with weaker market demand[64](index=64&type=chunk) [Liquidity and Capital Resources](index=19&type=section&id=Liquidity%20and%20Capital%20Resources) As of February 3, 2024, the company held **$1.3 billion in cash and cash equivalents**, with **$1.14 billion** from operations, and continues its capital return program through dividends and share repurchases - The company's principal source of liquidity was **$1.3 billion of cash and cash equivalents** as of February 3, 2024[72](index=72&type=chunk) Working Capital Metrics | Metric | Feb 3, 2024 (in millions) | Oct 28, 2023 (in millions) | | :--- | :--- | :--- | | Accounts receivable | $1,196.7 | $1,469.7 | | Days sales outstanding | 52 | 52 | | Inventory | $1,553.2 | $1,642.2 | | Days cost of sales in inventory | 151 | 143 | - As of February 3, 2024, the company had **$544.4 million of outstanding borrowings** under its commercial paper program and was in compliance with all debt covenants[77](index=77&type=chunk)[78](index=78&type=chunk)[79](index=79&type=chunk) - An additional **$2.0 billion** remains available for repurchase under the current authorized stock repurchase program[81](index=81&type=chunk) - The company expects capital expenditures for fiscal 2024 to be between approximately **$600 million and $800 million**[82](index=82&type=chunk) [PART II — OTHER INFORMATION](index=22&type=section&id=PART%20II%20%E2%80%94%20OTHER%20INFORMATION) This section covers legal proceedings, risk factors, equity security sales, and controls and procedures [Item 1. Legal Proceedings](index=23&type=section&id=ITEM%201.%20Legal%20Proceedings) This section refers to Note 6 of the financial statements, detailing a pending class action lawsuit related to the Maxim Integrated Products acquisition, currently under appeal - Information on legal proceedings is detailed in Note 6, Commitments and Contingencies, concerning a lawsuit related to the Maxim acquisition[88](index=88&type=chunk)[26](index=26&type=chunk) [Item 1A. Risk Factors](index=23&type=section&id=ITEM%201A.%20Risk%20Factors) The company states that it is subject to various risks that could adversely affect its business, referring to its Annual Report on Form 10-K for a detailed description - There are no new risk factors presented; the company refers to the risk factors disclosed in its 2023 Annual Report on Form 10-K[89](index=89&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=24&type=section&id=ITEM%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) During the first quarter of fiscal 2024, the company repurchased a total of **1,030,078 shares** of its common stock at an average price of **$173.47 per share** Issuer Purchases of Equity Securities (Q1 2024) | Period | Total Shares Purchased | Average Price Paid Per Share | Approx. Dollar Value Remaining in Program (in billions) | | :--- | :--- | :--- | :--- | | Oct 29, 2023 - Feb 3, 2024 | 1,030,078 | $173.47 | $1.96 | [Item 4. Controls and Procedures](index=22&type=section&id=ITEM%204.%20Controls%20and%20Procedures) Management, including the CEO and CFO, concluded that the company's disclosure controls and procedures were effective as of February 3, 2024, with no material changes to internal control over financial reporting - The CEO and CFO concluded that the company's disclosure controls and procedures were effective at a reasonable assurance level as of February 3, 2024[85](index=85&type=chunk) - No material changes in internal control over financial reporting occurred during the quarter[86](index=86&type=chunk)