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Analog Devices (ADI) Beats Q2 Earnings, Revenue Estimates
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Analog Devices Inc. (ADI - Free Report) reported second-quarter fiscal 2018 adjusted earnings of $1.45 per share, beating the Zacks Consensus Estimate by 8 cents. The bottom line surged 41% year over year and 3% sequentially. Also, the figure surpassed the guided range of $1.30-$1.44.
Revenues of $1.51 billion topped the consensus mark of $1.47 billion and came close to the higher end of the guided range of $1.43-$1.51 billion. Moreover, the top line surged 32% year over year but remained flat sequentially.
The strong year-over-year growth was driven by a robust performance from the industrial, automotive and communications end-markets.
The stock has slightly underperformed the industry in the past 12 months. It has gained 6.07% compared with the industry’s growth of 7.71%.
Revenues by End Markets
Industrial (52% of the total revenues) revenues soared 47% year over year and 6% sequentially to $788.3 million.
Communications (19% of the total revenues) revenues surged 34% year over year and 1% sequentially to $287.9 million.
Automotive (16% of the total revenues) revenues jumped 28% from the year-ago quarter but were down 6% from the last reported quarter to $238.8 million.
Consumer (13% of the total revenues) revenues declined 6% year over year and 17% sequentially to $198.1 million.
Operating Details
Non-GAAP gross margin expanded 200 basis points (bps) on a year-over-year basis and 30 bps sequentially to 71.3%.
Adjusted operating expenses, as a percentage of revenues, declined 220 bps from the year-ago quarter and 20 bps sequentially to 29.2%.
Non-GAAP operating margin expanded 420 bps on a year-over-year basis and 40 bps sequentially to 42.1%.
Balance Sheet & Cash Flow
Analog Devices exited the second quarter with cash and short-term investments of approximately $806.5 million, down from $827.6 million at the end of the prior quarter.
Long-term debt was approximately $6.93 billion, down from $7.38 billion at the end of the last reported quarter.
Net cash provided by operations was $718.5 million, up from $388.7 million reported in the fiscal first quarter.
Guidance
For the third quarter of fiscal 2018, Analog Devices expects revenues between $1.47 billion and $1.55 billion. The Zacks Consensus Estimate stands at $1.49 billion.
Analog Devices projects interest and other expense of approximately $58 million.
Earnings are expected in the band of $1.38-$1.52 per share. The consensus mark for the same is pegged at $1.39.
Analog Devices, Inc. Price, Consensus and EPS Surprise
Long-term earnings per share growth rate for Littelfuse, SMC and Amazon is projected at 12%, 13.7% and 30.2%, respectively.
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Analog Devices (ADI) Beats Q2 Earnings, Revenue Estimates
Analog Devices Inc. (ADI - Free Report) reported second-quarter fiscal 2018 adjusted earnings of $1.45 per share, beating the Zacks Consensus Estimate by 8 cents. The bottom line surged 41% year over year and 3% sequentially. Also, the figure surpassed the guided range of $1.30-$1.44.
Revenues of $1.51 billion topped the consensus mark of $1.47 billion and came close to the higher end of the guided range of $1.43-$1.51 billion. Moreover, the top line surged 32% year over year but remained flat sequentially.
The strong year-over-year growth was driven by a robust performance from the industrial, automotive and communications end-markets.
The stock has slightly underperformed the industry in the past 12 months. It has gained 6.07% compared with the industry’s growth of 7.71%.
Revenues by End Markets
Industrial (52% of the total revenues) revenues soared 47% year over year and 6% sequentially to $788.3 million.
Communications (19% of the total revenues) revenues surged 34% year over year and 1% sequentially to $287.9 million.
Automotive (16% of the total revenues) revenues jumped 28% from the year-ago quarter but were down 6% from the last reported quarter to $238.8 million.
Consumer (13% of the total revenues) revenues declined 6% year over year and 17% sequentially to $198.1 million.
Operating Details
Non-GAAP gross margin expanded 200 basis points (bps) on a year-over-year basis and 30 bps sequentially to 71.3%.
Adjusted operating expenses, as a percentage of revenues, declined 220 bps from the year-ago quarter and 20 bps sequentially to 29.2%.
Non-GAAP operating margin expanded 420 bps on a year-over-year basis and 40 bps sequentially to 42.1%.
Balance Sheet & Cash Flow
Analog Devices exited the second quarter with cash and short-term investments of approximately $806.5 million, down from $827.6 million at the end of the prior quarter.
Long-term debt was approximately $6.93 billion, down from $7.38 billion at the end of the last reported quarter.
Net cash provided by operations was $718.5 million, up from $388.7 million reported in the fiscal first quarter.
Guidance
For the third quarter of fiscal 2018, Analog Devices expects revenues between $1.47 billion and $1.55 billion. The Zacks Consensus Estimate stands at $1.49 billion.
Analog Devices projects interest and other expense of approximately $58 million.
Earnings are expected in the band of $1.38-$1.52 per share. The consensus mark for the same is pegged at $1.39.
Analog Devices, Inc. Price, Consensus and EPS Surprise
Analog Devices, Inc. Price, Consensus and EPS Surprise | Analog Devices, Inc. Quote
Zacks Rank &Other Stocks to Consider
Currently, Analog Devices holds a Zacks Rank #2 (Buy).Other top-ranked stocks in the technology sector are Littelfuse, Inc. (LFUS - Free Report) , SMC Corporation (SMCAY - Free Report) and Amazon.com, Inc. (AMZN - Free Report) , eachsporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Long-term earnings per share growth rate for Littelfuse, SMC and Amazon is projected at 12%, 13.7% and 30.2%, respectively.
Today's Stocks from Zacks' Hottest Strategies
It's hard to believe, even for us at Zacks. But while the market gained +21.9% in 2017, our top stock-picking screens have returned +115.0%, +109.3%, +104.9%, +98.6%, and +67.1%.
And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - 2017, the composite yearly average gain for these strategies has beaten the market more than 19X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation.
See Them Free>>