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Analog Devices (ADI) Q1 Earnings Beat, Revenues Rise Y/Y
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Analog Devices Inc. (ADI - Free Report) has reported first-quarter fiscal 2022 adjusted earnings of $1.94 per share, beating the Zacks Consensus Estimate by 8.4%. The bottom line increased 35% year over year.
Revenues of $2.68 billion surpassed the Zacks Consensus Estimate of $2.61 billion. Also, the top line improved 72% year over year.
The strong performance delivered by Analog Devices across the consumer, communications, industrial and automotive markets drove the top line.
Revenues by End Markets
Industrial: Analog Devices generated revenues of $1.3 billion (accounting for 50% of total revenues), which grew 57% year over year.
Communications: Revenues from the market were $412.4 million (15% of revenues), increasing 46% year over year.
Automotive: Revenues from the market summed $552.7 million (21% of revenues), up 124% from the year-ago quarter’s level.
Consumer: The market generated revenues of $378.1 million (14% of revenues), reflecting 117% growth on a year-over-year basis.
Analog Devices, Inc. Price, Consensus and EPS Surprise
The adjusted gross margin expanded 190 basis points (bps) on a year-over-year basis to 71.9%.
Adjusted operating expenses were $702.4 million, up 54.2% from the year-ago quarter’s level. As a percentage of revenues, adjusted operating expenses were 26.2%, contracting 300 bps year over year.
The adjusted operating margin expanded 510 bps on a year-over-year basis to 45.8% in the reported quarter.
Balance Sheet & Cash Flow
As of Jan 29, 2022, cash and cash equivalents were $1.8 billion, down from $1.9 billion as of Oct 30, 2021.
Long-term debt was $6.254 billion at the end of the fiscal first quarter compared with $6.253 billion at the end of the fiscal fourth quarter.
Net cash provided by operations was $856.4 million in the reported quarter, up from $940.7 million in the prior quarter.
ADI generated $745.3 million of free cash flow in the fiscal first quarter.
Additionally, Analog Devices returned $939 million to its shareholders, of which it made dividend payments of $363 million and repurchased shares worth $576 million in the fiscal first quarter.
Guidance
For second-quarter fiscal 2022, ADI expects revenues of $2.80 billion (+/- $100 million). The Zacks Consensus Estimate for the same is pegged at $2.65 billion.
Non-GAAP earnings are expected to be $2.07 (+/- $0.10) per share. The consensus mark for the same is pegged at $1.85 per share.
The company anticipates non-GAAP operating margins of 46.5% (+/- 70 bps).
Zacks Rank & Stocks to Consider
Currently, Analog Devices carries a Zacks Rank #2 (Buy).
Broadcom is scheduled to release first-quarter fiscal 2022 results on Mar 3. It has gained 24.9% over a year. The long-term earnings growth rate for AVGO is currently projected at 14.5%.
Intuit is slated to report second-quarter fiscal 2022 results on Feb 24. It has gained 26.9% over a year. The long-term earnings growth rate for INTU is currently projected at 15.7%.
Zscaler is slated to report second-quarter fiscal 2022 results on Feb 24. It has gained 27.2% over a year. The long-term earnings growth rate for ZS is currently projected at 37.1%.
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Analog Devices (ADI) Q1 Earnings Beat, Revenues Rise Y/Y
Analog Devices Inc. (ADI - Free Report) has reported first-quarter fiscal 2022 adjusted earnings of $1.94 per share, beating the Zacks Consensus Estimate by 8.4%. The bottom line increased 35% year over year.
Revenues of $2.68 billion surpassed the Zacks Consensus Estimate of $2.61 billion. Also, the top line improved 72% year over year.
The strong performance delivered by Analog Devices across the consumer, communications, industrial and automotive markets drove the top line.
Revenues by End Markets
Industrial: Analog Devices generated revenues of $1.3 billion (accounting for 50% of total revenues), which grew 57% year over year.
Communications: Revenues from the market were $412.4 million (15% of revenues), increasing 46% year over year.
Automotive: Revenues from the market summed $552.7 million (21% of revenues), up 124% from the year-ago quarter’s level.
Consumer: The market generated revenues of $378.1 million (14% of revenues), reflecting 117% growth on a year-over-year basis.
Analog Devices, Inc. Price, Consensus and EPS Surprise
Analog Devices, Inc. price-consensus-eps-surprise-chart | Analog Devices, Inc. Quote
Operating Details
The adjusted gross margin expanded 190 basis points (bps) on a year-over-year basis to 71.9%.
Adjusted operating expenses were $702.4 million, up 54.2% from the year-ago quarter’s level. As a percentage of revenues, adjusted operating expenses were 26.2%, contracting 300 bps year over year.
The adjusted operating margin expanded 510 bps on a year-over-year basis to 45.8% in the reported quarter.
Balance Sheet & Cash Flow
As of Jan 29, 2022, cash and cash equivalents were $1.8 billion, down from $1.9 billion as of Oct 30, 2021.
Long-term debt was $6.254 billion at the end of the fiscal first quarter compared with $6.253 billion at the end of the fiscal fourth quarter.
Net cash provided by operations was $856.4 million in the reported quarter, up from $940.7 million in the prior quarter.
ADI generated $745.3 million of free cash flow in the fiscal first quarter.
Additionally, Analog Devices returned $939 million to its shareholders, of which it made dividend payments of $363 million and repurchased shares worth $576 million in the fiscal first quarter.
Guidance
For second-quarter fiscal 2022, ADI expects revenues of $2.80 billion (+/- $100 million). The Zacks Consensus Estimate for the same is pegged at $2.65 billion.
Non-GAAP earnings are expected to be $2.07 (+/- $0.10) per share. The consensus mark for the same is pegged at $1.85 per share.
The company anticipates non-GAAP operating margins of 46.5% (+/- 70 bps).
Zacks Rank & Stocks to Consider
Currently, Analog Devices carries a Zacks Rank #2 (Buy).
Some other top-ranked stocks in the broader technology sector are Broadcom (AVGO - Free Report) , Intuit (INTU - Free Report) and Zscaler (ZS - Free Report) , each presently carrying a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Broadcom is scheduled to release first-quarter fiscal 2022 results on Mar 3. It has gained 24.9% over a year. The long-term earnings growth rate for AVGO is currently projected at 14.5%.
Intuit is slated to report second-quarter fiscal 2022 results on Feb 24. It has gained 26.9% over a year. The long-term earnings growth rate for INTU is currently projected at 15.7%.
Zscaler is slated to report second-quarter fiscal 2022 results on Feb 24. It has gained 27.2% over a year. The long-term earnings growth rate for ZS is currently projected at 37.1%.