Analog Devices Inc. ( ADI Quick Quote 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. 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 Quick Quote MCHX - Free Report) , Overstock.com ( OSTK Quick Quote OSTK - Free Report) and Maxim Integrated Products, Inc. ( MXIM Quick Quote MXIM - Free Report) , 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
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