Analog Devices Clocks 21% Revenue Growth In Q1 Backed By Industrial And Automotive Markets; Boosts Dividend By 13%

Analog Devices, Inc ADI reported first-quarter FY23 revenue growth of 21% year-on-year to $3.25 billion, beating the consensus of $3.15 billion.

• Adjusted EPS of $2.75 beat the consensus of $2.60.
• End Markets: Analog Devices' Industrial revenue grew 26% Y/Y to $1.69 billion.
• Automotive revenue increased 29% Y/Y to $718.2 million. Communications revenue rose 18% to $487.99 million, and Consumer revenue decreased by 5% to $353.3 million.
• Margin: The adjusted gross margin expanded by 170 bps to 73.6%. The adjusted operating margin grew by 530 bps to 51.1%.
• Analog Devices held $1.67 billion in cash and equivalents and generated $1.41 billion in operating cash flow.
• Dividend: The board boosted the quarterly dividend by 13% to $0.86 per share.
• Vincent Roche, CEO and chair said, "Encouragingly, despite the macro uncertainty, demand remains resilient in our Industrial and Automotive markets, driven by continued momentum across secular growth areas, such as automation and electrification."
• Outlook: Analog Devices sees Q2 revenue of $3.10 billion - $3.30 billion, above the consensus of $3.03 billion.
• The company sees adjusted EPS of $2.65 - $2.85, above the consensus of $2.42.

Price Action: ADI shares traded higher by 4.98% at $191.63 in the premarket session on the last check Wednesday

Also Read: Top 5 Tech Stocks That May Crash