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Analog Devices (ADI) Beats Q3 Earnings & Revenue Estimates
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Analog Devices Inc. (ADI - Free Report) reported third-quarter fiscal 2018 adjusted earnings of $1.53 per share, beating the Zacks Consensus Estimate of $1.46. Moreover, the bottom line increased 22% year over year and 6% sequentially. Also, the figure surpassed the guided range of $1.38-$1.52.
Revenues of $1.57 billion topped the consensus mark of $1.52 billion and came ahead of the guided range of $1.47-$1.55billion. Moreover, the top line improved 7.8% year over year and 3.9% sequentially.
The strong growth was driven by robust performance from industrial, automotive and communications end-markets.
The company has authorized to repurchase an additional $2 billion of its common stock.
The stock has outperformed the industry in the past 12 months. It has gained 21.3% compared with the industry’s growth of 4.5%.
Revenues by End Markets
Industrial revenues (50% of the total sales) soared 14% year over year and 1% sequentially to $793.3 million.
Communications revenues (21% of the total sales) grew 27% year over year and 12% sequentially to $323.9 million.
Automotive revenues (16% of the total sales) jumped 6% from the year-ago quarter and 3% from the last reported quarter to $246.9 million.
Consumer revenues (13% of the total sales) declined 17% year over year but increased 5% sequentially to $208.6 million.
Operating Details
Non-GAAP gross margin expanded 70 basis points (bps) on a year-over-year basis but decreased 10 bps sequentially to 71.2%.
Adjusted operating expenses, as a percentage of revenues, declined 150 bps from the year-ago quarter and 70 bps sequentially to 28.5%.
Non-GAAP operating margin expanded 220 bps on a year-over-year basis and 60 bps sequentially to 42.7%.
Balance Sheet & Cash Flow
Analog Devices exited the third quarter with cash and short-term investments of approximately $772.6 million, down from $806.5 million at the end of fiscal second quarter.
Long-term debt was approximately $6.5 billion, down from $6.93 billion at fiscal second quarter-end.
Net cash provided by operations was $620.7 million, down from $718.5 million reported in the fiscal second quarter.
Guidance
For the fourth quarter of fiscal 2018, Analog Devices expects revenues of $1.57 billion (+/- $40 million). The Zacks Consensus Estimate for the same stands at $1.55 billion.
Analog Devices projects interest and other expenses at approximately $57 million.
Earnings are expected to be $1.52 (+/- $0.06) per share. The consensus mark for the same is pegged at $1.52.
Analog Devices, Inc. Price, Consensus and EPS Surprise
Long-term earnings growth for Cirrus Logic, Infineon Technologies and Rambus is currently projected to be 11.1%, 7.5% and 10%, respectively.
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Analog Devices (ADI) Beats Q3 Earnings & Revenue Estimates
Analog Devices Inc. (ADI - Free Report) reported third-quarter fiscal 2018 adjusted earnings of $1.53 per share, beating the Zacks Consensus Estimate of $1.46. Moreover, the bottom line increased 22% year over year and 6% sequentially. Also, the figure surpassed the guided range of $1.38-$1.52.
Revenues of $1.57 billion topped the consensus mark of $1.52 billion and came ahead of the guided range of $1.47-$1.55billion. Moreover, the top line improved 7.8% year over year and 3.9% sequentially.
The strong growth was driven by robust performance from industrial, automotive and communications end-markets.
The company has authorized to repurchase an additional $2 billion of its common stock.
The stock has outperformed the industry in the past 12 months. It has gained 21.3% compared with the industry’s growth of 4.5%.
Revenues by End Markets
Industrial revenues (50% of the total sales) soared 14% year over year and 1% sequentially to $793.3 million.
Communications revenues (21% of the total sales) grew 27% year over year and 12% sequentially to $323.9 million.
Automotive revenues (16% of the total sales) jumped 6% from the year-ago quarter and 3% from the last reported quarter to $246.9 million.
Consumer revenues (13% of the total sales) declined 17% year over year but increased 5% sequentially to $208.6 million.
Operating Details
Non-GAAP gross margin expanded 70 basis points (bps) on a year-over-year basis but decreased 10 bps sequentially to 71.2%.
Adjusted operating expenses, as a percentage of revenues, declined 150 bps from the year-ago quarter and 70 bps sequentially to 28.5%.
Non-GAAP operating margin expanded 220 bps on a year-over-year basis and 60 bps sequentially to 42.7%.
Balance Sheet & Cash Flow
Analog Devices exited the third quarter with cash and short-term investments of approximately $772.6 million, down from $806.5 million at the end of fiscal second quarter.
Long-term debt was approximately $6.5 billion, down from $6.93 billion at fiscal second quarter-end.
Net cash provided by operations was $620.7 million, down from $718.5 million reported in the fiscal second quarter.
Guidance
For the fourth quarter of fiscal 2018, Analog Devices expects revenues of $1.57 billion (+/- $40 million). The Zacks Consensus Estimate for the same stands at $1.55 billion.
Analog Devices projects interest and other expenses at approximately $57 million.
Earnings are expected to be $1.52 (+/- $0.06) per share. The consensus mark for the same is pegged at $1.52.
Analog Devices, Inc. Price, Consensus and EPS Surprise
Analog Devices, Inc. Price, Consensus and EPS Surprise | Analog Devices, Inc. Quote
Zacks Rank &Stocks to Consider
Currently, Analog Devices has a Zacks Rank #3 (Hold).Some better-ranked stocks in the technology sector are Cirrus Logic, Inc. (CRUS - Free Report) , Infineon Technologies AG (IFNNY - Free Report) and Rambus Inc. (RMBS - Free Report) , each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Long-term earnings growth for Cirrus Logic, Infineon Technologies and Rambus is currently projected to be 11.1%, 7.5% and 10%, respectively.
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2020.
Click here for the 6 trades >>