Analog Devices Inc. (ADI - Free Report) reported first-quarter fiscal 2021 adjusted earnings of $1.44 per share, beating the Zacks Consensus Estimate by 9.1%. Further, the bottom line increased 40% year over year but remained flat sequentially.Revenues of $1.56 billion surpassed the Zacks Consensus Estimate of $1.51 billion. Also, the top line improved 20% year over year and 2.1% from the fourth- quarter fiscal 2020 level as well.
Strong performance delivered by the company across all end-markets, especially the industrial market, drove the year-over-year top line.
Revenues by End Markets
Industrial: The company generated revenues of $855.4 million (accounting for 55% of total revenues), which grew 24% year over year.Communications: Revenues from this market came in at $281.05 million (18% of revenues), increasing 16% year over year.
Automotive: Revenues from this market summed $245.3 million (16% of revenues), up 19% from the year-ago quarter.
Consumer: This market generated revenues worth$176.7 million (11% of revenues), reflecting 5% growth on a year-over-year basis.
Operating Details
Non-GAAP gross margin expanded 150 basis points (bps) on a year-over-year basis to 70%.Adjusted operating expenses were $455.5 million, up 10.6% from the year-ago quarter. As a percentage of revenues, adjusted operating expenses were 29.2%, contracting 240 bps year over year.
Non-GAAP operating margin expanded 380 bps on a year-over-year basis to 40.7% during the reported quarter.
Balance Sheet & Cash Flow
As of Jan 30, 2021, cash and cash equivalents were $1.05 billion, down from $1.06 billion as of Oct 31, 2020.Long-term debt was $4.7 billion at the end of the fiscal first quarter, down from $5.1 billion at the end of the fiscal fourth quarter.
Net cash provided by operations was $427.9 million in the reported quarter, down from $673million in the prior quarter.
The company generated $361 million of free cash flow during the fiscal first quarter.
Additionally, Analog Devices returned $386 million to its shareholders of which it made dividend payments worth $229 million and repurchased shares worth $157 million in the fiscal first quarter.
Guidance
For second-quarter fiscal 2021, Analog Devices expects revenues to be $1.60 billion (+/- $50 million). The Zacks Consensus Estimate for the same is pegged at $1.54 billion.Non-GAAP earnings are expected to be $1.44 (+/- $0.08) per share. The consensus mark for the same is pegged at $1.39 per share.
The company anticipates non-GAAP operating margins to be 41% (+/- 70 bps).
Zacks Rank & Stocks to Consider
Currently, Analog Devices carries a Zacks Rank #3 (Hold).Some better-ranked stocks in the broader technology sector are CrowdStrike Holdings Inc. (CRWD - Free Report) , Workday, Inc. (WDAY - Free Report) and MACOM Technology Solutions Holdings, Inc. (MTSI - Free Report) , each presently 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 rate for CrowdStrike, Workday and MACOM is currently pegged at 25%, 25.36% and 37%, respectively.
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Analog Devices Inc. (ADI - Free Report) reported first-quarter fiscal 2021 adjusted earnings of $1.44 per share, beating the Zacks Consensus Estimate by 9.1%. Further, the bottom line increased 40% year over year but remained flat sequentially.
Revenues of $1.56 billion surpassed the Zacks Consensus Estimate of $1.51 billion. Also, the top line improved 20% year over year and 2.1% from the fourth- quarter fiscal 2020 level as well.
Strong performance delivered by the company across all end-markets, especially the industrial market, drove the year-over-year top line.
Revenues by End Markets
Industrial: The company generated revenues of $855.4 million (accounting for 55% of total revenues), which grew 24% year over year.
Communications: Revenues from this market came in at $281.05 million (18% of revenues), increasing 16% year over year.
Automotive: Revenues from this market summed $245.3 million (16% of revenues), up 19% from the year-ago quarter.
Consumer: This market generated revenues worth$176.7 million (11% of revenues), reflecting 5% growth on a year-over-year basis.
Operating Details
Non-GAAP gross margin expanded 150 basis points (bps) on a year-over-year basis to 70%.
Adjusted operating expenses were $455.5 million, up 10.6% from the year-ago quarter. As a percentage of revenues, adjusted operating expenses were 29.2%, contracting 240 bps year over year.
Non-GAAP operating margin expanded 380 bps on a year-over-year basis to 40.7% during the reported quarter.
Balance Sheet & Cash Flow
As of Jan 30, 2021, cash and cash equivalents were $1.05 billion, down from $1.06 billion as of Oct 31, 2020.
Long-term debt was $4.7 billion at the end of the fiscal first quarter, down from $5.1 billion at the end of the fiscal fourth quarter.
Net cash provided by operations was $427.9 million in the reported quarter, down from $673million in the prior quarter.
The company generated $361 million of free cash flow during the fiscal first quarter.
Additionally, Analog Devices returned $386 million to its shareholders of which it made dividend payments worth $229 million and repurchased shares worth $157 million in the fiscal first quarter.
Guidance
For second-quarter fiscal 2021, Analog Devices expects revenues to be $1.60 billion (+/- $50 million). The Zacks Consensus Estimate for the same is pegged at $1.54 billion.
Non-GAAP earnings are expected to be $1.44 (+/- $0.08) per share. The consensus mark for the same is pegged at $1.39 per share.
The company anticipates non-GAAP operating margins to be 41% (+/- 70 bps).
Zacks Rank & Stocks to Consider
Currently, Analog Devices carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader technology sector are CrowdStrike Holdings Inc. (CRWD - Free Report) , Workday, Inc. (WDAY - Free Report) and MACOM Technology Solutions Holdings, Inc. (MTSI - Free Report) , each presently 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 rate for CrowdStrike, Workday and MACOM is currently pegged at 25%, 25.36% and 37%, respectively.
Legal Marijuana: An Investor’s Dream
Imagine getting in early on a young industry primed to skyrocket from $17.7 billion in 2019 to an expected $73.6 billion by 2027.
Although marijuana stocks did better as the pandemic took hold than the market as a whole, they’ve been pushed down. This is exactly the right time to get in on selected strong companies at a fraction of their value before COVID struck. Zacks’ Special Report, Marijuana Moneymakers, reveals 10 exciting tickers for urgent consideration.
Download Marijuana Moneymakers FREE >>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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