Analog Devices Beats Q1 Estimates, Raises Dividend As Automotive Revenue Declines

On Wednesday, Analog Devices, Inc ADI stock traded higher after the company reported fiscal first-quarter results.

The company’s revenue declined 4% year-on-year to $2.42 billion, beating the analyst consensus estimate of $2.36 billion. Adjusted EPS of $1.63 beat the analyst consensus estimate of $1.54.

Analog Devices’ Industrial revenue declined by 10% Y/Y to $1.08 billion. Automotive revenue decreased 2% Y/Y to $732.51 million.

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Communications revenue declined by 4% to $289.86 million, and Consumer revenue increased by 19% to $322.90 million.

The adjusted gross margin declined by 20 bps to 68.8%. The adjusted operating margin fell by 150 bps to 40.5%.

Analog Devices held $2.72 billion in cash and equivalents as of Nov. 2, 2024, generating $1.05 billion in operating cash flow.

Dividend: The Analog Devices Board declared a quarterly cash dividend of 99 cents per outstanding share of common stock, up by 8%.

CFO Richard Puccio noted that bookings continued to show gradual improvement during the first quarter, with strength in industrial and automotive positioning. This allowed Analog Devices to grow sequentially and year-over-year in its second fiscal quarter. He remains confident that fiscal 2025 represents a return to growth for Analog Devices.

Outlook: Analog Devices expects fiscal second-quarter 2025 revenue of $2.4 billion-$2.6 billion, versus the consensus of $2.46 billion. The company projects adjusted EPS of $1.58-$1.78, against the consensus of $1.66.

Analog Devices stock surged over 16% in the last 12 months.

Bank of America’s Vivek Arya cited the company’s differentiated precision analog portfolio as support for a possible turnaround in the year’s second half.

Truist’s William Stein noted that Analog Devices is capitalizing on sound organic investments and creating a better future with M&A, including accelerating sales growth and improving expense efficiencies.

Price Action: Analog Devices’ stock traded higher by 4.95% at $231.12 premarket at the last check Wednesday.

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