Analog Devices(ADI) - 2024 Q4 - Annual Results

Revenue Performance - Fourth quarter revenue exceeded $2.4 billion, showing sequential growth across all end markets[2] - Fiscal 2024 revenue reached over $9.4 billion, with operating cash flow of $3.9 billion and free cash flow of $3.1 billion[2] - Revenue for the three months ended November 2, 2024, was $2,443,205, a decrease of 10% compared to $2,716,484 for the same period in 2023[22] - Total revenue for the three months ended November 2, 2024, was $2,443,205,000, representing a 10% year-over-year decline from $2,716,484,000[29] - Total revenue for the twelve months ended October 28, 2023, was $12,305,539,000, a decrease of 23% year-over-year[29] - Revenue for the trailing twelve months ended November 2, 2024, was $9,427,157, with a quarterly revenue of $2,443,205 for the three months ended October 28, 2023[31] - The company expects revenue for the three months ending February 1, 2025, to be approximately $2.35 billion, with an operating margin of 22.0%[32] Profitability Metrics - Adjusted diluted earnings per share for the fourth quarter was $1.67, a decrease of 17% year-over-year[5] - Adjusted gross margin percentage for fiscal 2024 was 67.9%, down 460 basis points compared to the previous year[5] - Operating income for the three months ended November 2, 2024, was $569,392, compared to $634,415 for the same period in 2023, indicating a decrease of approximately 10%[22] - Net income for the three months ended November 2, 2024, was $478,072, down from $498,430 in the same period last year, representing a decline of about 4%[22] - Basic earnings per share for the three months ended November 2, 2024, was $0.96, compared to $1.00 for the same period in 2023[22] - Gross margin for the three months ended November 2, 2024, was $1,416,128, down from $1,646,716 in the prior year, reflecting a gross margin percentage decline[22] - Gross margin percentage for the three months ended October 28, 2023, was 60.6%, compared to 58.0% for the same period last year[30] - Adjusted operating income for the twelve months ended October 28, 2023, was $6,014,423, reflecting an adjusted operating margin of 48.9%[30] Shareholder Returns - The company returned over $2.4 billion to shareholders in fiscal 2024, including $1.8 billion in dividends[2] - The board declared a quarterly cash dividend of $0.92 per share, payable on December 20, 2024[10] Cash Flow and Assets - Net cash provided by operating activities for the twelve months ended October 28, 2023, was $4,817,634,000, which is 39% of total revenue[26] - Free cash flow for the twelve months ended November 2, 2024, was $3,122,066, representing 33% of revenue[31] - Cash and cash equivalents at the end of the period were $1,991,342,000[26] - Total current assets increased to $5,484,654 as of November 2, 2024, from $4,384,022 as of October 28, 2023, reflecting a growth of approximately 25%[24] - Total assets decreased to $48,228,277 as of November 2, 2024, from $48,794,478 as of October 28, 2023, indicating a reduction of about 1.2%[24] - Long-term debt increased to $6,634,313 as of November 2, 2024, compared to $5,902,457 as of October 28, 2023, representing an increase of approximately 12.4%[24] Market Segmentation - Industrial revenue decreased by 21% year-over-year to $1,070,978,000, accounting for 44% of total revenue[29] - Automotive revenue was $716,964,000, a slight decrease of 2% year-over-year, representing 29% of total revenue[29] - Consumer revenue increased by 31% year-over-year to $379,690,000, making up 16% of total revenue[29] Strategic Focus - The company plans to continue strategic investments in engineering, manufacturing, and customer experience to drive long-term growth[3] - The company plans to focus on investments in digital, software, cybersecurity, and artificial intelligence to enhance future growth opportunities[19] Operational Challenges - The company maintained operating margins above 40% despite unprecedented customer inventory headwinds[3] - Orders increased steadily in Q4, particularly in the Automotive end market, indicating a potential recovery[3] Tax and Expenses - The effective tax rate for the three months ended October 28, 2023, was 12.8%[30] - Operating expenses as a percentage of revenue for the three months ended October 28, 2023, increased to 37.3% from 34.7% in the previous year[30] - Acquisition-related expenses for the twelve months ended October 28, 2023, totaled $1,047,309[30]