Analog Devices Q4 Earnings: Beats Estimates, Automotive Rebound, Cautiously Optimistic Outlook & More

Analog Devices, Inc ADI stock traded higher Tuesday after the company reported fiscal fourth-quarter results.

The company’s revenue declined 10% year-on-year to $2.44 billion, beating the analyst consensus estimate of $2.40 billion. Adjusted EPS of $1.67 beat the analyst consensus estimate of $1.64.

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Analog Devices’ Industrial revenue declined by 21% Y/Y to $1.07 billion. Automotive revenue decreased 2% Y/Y to $716.96 million.

Communications revenue declined by 18% to $275.57 million, and Consumer revenue increased by 31% to $379.69 million.

The adjusted gross margin declined by 230 bps to 67.9% as lower revenue weighed on the profits. The adjusted operating margin fell by 360 bps to 41.1%.

Analog Devices held $2.36 billion in cash and equivalents as of November 2, 2024, generating $1.05 billion in operating cash flow.

According to CEO and Chair Vincent Roche, Analog Devices reported revenue, profitability, and earnings per share exceeding its midpoint guidance, reflecting strong business momentum and effective execution. Despite unprecedented inventory challenges leading to a historic revenue decline in fiscal 2024, the company maintained operating margins above 40%, showcasing the resilience of its business model.

Analog Devices’ quarterly cash dividend of $0.92 per outstanding share of common stock will be paid on December 20 to all shareholders of record at the close of business on December 9.

CFO Richard Puccio noted a rebound in bookings during the fourth quarter, especially in the Automotive segment, following a temporary decline in the third quarter. While macroeconomic uncertainties continue to temper recovery, Analog Devices remains cautiously optimistic about achieving significant growth in fiscal 2025.

Outlook: Analog Devices expects fiscal first-quarter 2025 revenue of $2.35 billion, +/- $100 million, versus the consensus of $2.34 billion. The company projects adjusted EPS of $1.53, +/-$0.10, against the consensus of $1.56.

Price Action: ADI stock traded higher by 5.47% at $235.80 premarket at the last check Tuesday.

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