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Analog Devices (ADI) Beats Q4 Earnings & Revenue Estimates
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Analog Devices Inc. (ADI - Free Report) reported fourth-quarter fiscal 2020 adjusted earnings of $1.44 per share, which beat the Zacks Consensus Estimate of $1.32. Also, the bottom line increased 21% year over year.
Revenues of $1.53 billion also surpassed the Zacks Consensus Estimate of $1.44 billion. The top line increased 4.8% sequentially and 5.7% year over year. Also, B2B revenues increased 4% sequentially and 10% year over year.
The increase in revenues was led by growth in all its end markets.
Revenues by End Markets
Industrial: The company generated revenues of $811.2 million (accounting for 53% of total revenues), up 9% year over year.
Communications: Revenues from this market came in at $312.6 million (20% of revenues), increasing 19% year over year.
Automotive: Revenues from this market came in at $229.8 million (15% of revenues), up 2% from the year-ago quarter.
Consumer: This market generated revenues of $172.6 million (11% of revenues), reflecting a 17% decline on a year-over-year basis.
Analog Devices, Inc. Price, Consensus and EPS Surprise
Non-GAAP gross margin expanded 160 basis points (bps) on a year-over-year basis to 70%.
Total adjusted operating expenses were $431.4 million, up 1.1% from the year-ago quarter.
Non-GAAP operating margin expanded 290 bps on a year-over-year basis to 41.7% for the reported quarter.
Balance Sheet & Cash Flow
At fiscal fourth quarter-end, cash and cash equivalents were $1.06 billion, down from $1.09 billion in the prior quarter.
Long-term debt was approximately $5.1 billion, flat sequentially.
Net cash provided by operations was $673 million for the fiscal fourth quarter, up from $557.2 million in the prior quarter.
The company generated $643 million of free cash flow during the fiscal fourth quarter.
Additionally, Analog Devices returned $237 million to shareholders through dividends and share repurchases in the reported quarter.
Guidance
For first-quarter fiscal 2021, Analog Devices expects revenues to be $1.50 billion (+/- $70 million). The Zacks Consensus Estimate for the same is pegged at $1.43 billion.
Non-GAAP earnings are expected to be $1.30 (+/- $0.10) per share. The consensus mark for the same is pegged at $1.29 per share.
The company anticipates non-GAAP operating margins to be 40% (+/- 100 bps).
Zacks Rank & Key Picks
Analog Devices currently has a Zacks Rank #4 (Sell). Some better-ranked stocks in the broader technology sector include Marchex (MCHX - Free Report) , Overstock.com and Maxim Integrated Products, Inc. , each carrying a Zacks Rank #2 (Buy).
Be among the early investors in the new type of device that experts say could impact society as much as the discovery of electricity. Current technology will soon be outdated and replaced by these new devices. In the process, it’s expected to create 22 million jobs and generate $12.3 trillion in activity.
A select few stocks could skyrocket the most as rollout accelerates for this new tech. Early investors could see gains similar to buying Microsoft in the 1990s. Zacks’ just-released special report reveals 8 stocks to watch. The report is only available for a limited time.
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Analog Devices (ADI) Beats Q4 Earnings & Revenue Estimates
Analog Devices Inc. (ADI - Free Report) reported fourth-quarter fiscal 2020 adjusted earnings of $1.44 per share, which beat the Zacks Consensus Estimate of $1.32. Also, the bottom line increased 21% year over year.
Revenues of $1.53 billion also surpassed the Zacks Consensus Estimate of $1.44 billion. The top line increased 4.8% sequentially and 5.7% year over year. Also, B2B revenues increased 4% sequentially and 10% year over year.
The increase in revenues was led by growth in all its end markets.
Revenues by End Markets
Industrial: The company generated revenues of $811.2 million (accounting for 53% of total revenues), up 9% year over year.
Communications: Revenues from this market came in at $312.6 million (20% of revenues), increasing 19% year over year.
Automotive: Revenues from this market came in at $229.8 million (15% of revenues), up 2% from the year-ago quarter.
Consumer: This market generated revenues of $172.6 million (11% of revenues), reflecting a 17% decline 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
Non-GAAP gross margin expanded 160 basis points (bps) on a year-over-year basis to 70%.
Total adjusted operating expenses were $431.4 million, up 1.1% from the year-ago quarter.
Non-GAAP operating margin expanded 290 bps on a year-over-year basis to 41.7% for the reported quarter.
Balance Sheet & Cash Flow
At fiscal fourth quarter-end, cash and cash equivalents were $1.06 billion, down from $1.09 billion in the prior quarter.
Long-term debt was approximately $5.1 billion, flat sequentially.
Net cash provided by operations was $673 million for the fiscal fourth quarter, up from $557.2 million in the prior quarter.
The company generated $643 million of free cash flow during the fiscal fourth quarter.
Additionally, Analog Devices returned $237 million to shareholders through dividends and share repurchases in the reported quarter.
Guidance
For first-quarter fiscal 2021, Analog Devices expects revenues to be $1.50 billion (+/- $70 million). The Zacks Consensus Estimate for the same is pegged at $1.43 billion.
Non-GAAP earnings are expected to be $1.30 (+/- $0.10) per share. The consensus mark for the same is pegged at $1.29 per share.
The company anticipates non-GAAP operating margins to be 40% (+/- 100 bps).
Zacks Rank & Key Picks
Analog Devices currently has a Zacks Rank #4 (Sell). Some better-ranked stocks in the broader technology sector include Marchex (MCHX - Free Report) , Overstock.com and Maxim Integrated Products, Inc. , each carrying a Zacks Rank #2 (Buy).
Long-term earnings growth for Marchex, Overstock.com, and Maxim is currently projected at 15%, 20% and 10%, respectively. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Biggest Tech Breakthrough in a Generation
Be among the early investors in the new type of device that experts say could impact society as much as the discovery of electricity. Current technology will soon be outdated and replaced by these new devices. In the process, it’s expected to create 22 million jobs and generate $12.3 trillion in activity.
A select few stocks could skyrocket the most as rollout accelerates for this new tech. Early investors could see gains similar to buying Microsoft in the 1990s. Zacks’ just-released special report reveals 8 stocks to watch. The report is only available for a limited time.
See 8 breakthrough stocks now>>