Analog Devices(ADI) - 2025 Q1 - Quarterly Results

Revenue Performance - Revenue for the first quarter of fiscal 2025 was $2.423 billion, a decrease of 4% year-over-year from $2.513 billion[5] - Revenue for the three months ended February 1, 2025, was $2,423,174, a decrease of 4% compared to $2,512,704 for the same period in 2024[24] - Reported revenue for the three months ending May 3, 2025, was $2.5 billion, with an adjustment range of +/- $100 million[36] Profitability Metrics - Gross margin was $1.430 billion, with a gross margin percentage of 59.0%, up 30 basis points from 58.7% in the prior year[5] - Operating income decreased by 16% to $491 million, resulting in an operating margin of 20.3%, down 300 basis points year-over-year[5] - Net income decreased to $391,316, resulting in diluted earnings per share of $0.78, down from $0.93 in the previous year[24] - Operating margin reported at 24.2%, with an adjusted margin of 40.5%, including $406 million of acquisition-related expenses[36] Earnings Per Share - Diluted earnings per share (EPS) for the quarter was $0.78, a decline of 16% compared to $0.93 in the same quarter last year[5] - Adjusted diluted EPS for the second quarter is projected to be $1.68, with a margin of error of +/- $0.10[7] - Earnings per share reported at $0.97, with an adjusted EPS of $1.68, reflecting $0.71 from acquisition-related adjustments[36][37] Cash Flow and Dividends - Operating cash flow for the trailing twelve months was $3.8 billion, with free cash flow of $3.2 billion[4] - Free cash flow for the three months ended February 1, 2025, was $977,831, representing 40% of revenue[34] - The company raised its quarterly dividend by 8% to $0.99, marking the 21st consecutive year of increases[4] Shareholder Returns - The company increased its share repurchase authorization by $10 billion, bringing the total remaining authorization to approximately $11.5 billion[4] Sector Performance - Bookings showed gradual improvement, particularly in the Industrial and Automotive sectors, positioning the company for sequential and year-over-year growth[3] - The company reported a 10% decline in revenue from the industrial sector, which accounted for 44% of total revenue[31] - The automotive sector revenue decreased by 2%, maintaining a 30% share of total revenue[31] Expenses and Assets - Operating expenses totaled $938,990, which is 38.8% of revenue, up from 35.3% in the same period last year[33] - Cash and cash equivalents increased to $2,349,994 from $1,991,342 at the end of the previous quarter[28] - Total current assets rose to $5,733,076, compared to $5,484,654 in the prior quarter[26] - The company made payments for acquisitions totaling $45,652 during the quarter[28] Tax and Nonoperating Expenses - Nonoperating expenses were approximately $60 million, consistent across reported and adjusted figures[36] - Tax rate maintained between 11% and 13%, including $53 million of tax effects from acquisition-related adjustments[37]