We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Analog Devices (ADI) Q2 Earnings Beat, Revenues Rise Y/Y
Read MoreHide Full Article
Analog Devices Inc. (ADI - Free Report) has reported second-quarter fiscal 2021 adjusted earnings of $1.54 per share, beating the Zacks Consensus Estimate by 6.2%. Further, the bottom line increased 43% year over year and 6.9% sequentially.
Revenues of $1.7 billion surpassed the Zacks Consensus Estimate of $1.6 billion. Also, the top line improved 26% year over year and 6.6% from the first-quarter fiscal 2021 level.
Strong performance delivered by the company across all end-markets, especially the industrial and automotive markets, drove the top line.
Revenues by End Markets
Industrial: The company generated revenues of $927.2 million (accounting for 59% of total revenues), which grew 36% year over year.
Communications: Revenues from the market were $276.9 million (17% of revenues), increasing 0.1% year over year.
Automotive: Revenues from the market summed $257.6 million (16% of revenues), up 42% from the year-ago quarter.
Consumer: The market generated revenues of $154.7 million (9% of revenues), reflecting 8% growth on a year-over-year basis.
Analog Devices, Inc. Price, Consensus and EPS Surprise
Adjusted gross margin expanded 320basis points (bps) on a year-over-year basis to 70.9%.
Adjusted operating expenses were $483.7 million, up 23.9% from the year-ago quarter. As a percentage of revenues, adjusted operating expenses were 29.1%, contracting 50 bps year over year.
Adjusted operating margin expanded 370 bps on a year-over-year basis to 41.7% inthe reported quarter.
Balance Sheet & Cash Flow
As of May 1, 2021, cash and cash equivalents were $1.3 billion, up from $1.05 billionas of Jan 30, 2021.
Long-term debt was $3.8 billion at the end of the fiscal second quarter, down from $4.7 billion at the end of the fiscal first quarter.
Net cash provided by operations was $736.4 million in the reported quarter, up from $427.9 million in the prior quarter.
The company generated $677.2 million of free cash flow inthe fiscal second quarter.
Additionally, Analog Devices returned $443 million to its shareholders of which it made dividend payments worth $254 million and repurchased shares worth $189 million in the fiscal second quarter.
Guidance
For third-quarter fiscal 2021, the company expects revenues of $1.7 billion (+/- $70 million). The Zacks Consensus Estimate for the same is pegged at $1.65 billion.
Non-GAAP earnings are expected to be $1.61 (+/- $0.11) per share. The consensus mark for the same is pegged at $1.53 per share.
The company anticipates non-GAAP operating margins of 42.5% (+/- 100 bps).
Zacks Rank & Stocks to Consider
Currently, Analog Devices carry a Zacks Rank #3 (Hold).
Long-term earnings growth rates of NVIDIA, NXP Semiconductors and Texas Instruments are pegged at 15.23%, 10% and 9.33%, respectively.
5 Stocks Set to Double
Each was hand-picked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2020. Each comes from a different sector and has unique qualities and catalysts that could fuel exceptional growth.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
Image: Bigstock
Analog Devices (ADI) Q2 Earnings Beat, Revenues Rise Y/Y
Analog Devices Inc. (ADI - Free Report) has reported second-quarter fiscal 2021 adjusted earnings of $1.54 per share, beating the Zacks Consensus Estimate by 6.2%. Further, the bottom line increased 43% year over year and 6.9% sequentially.
Revenues of $1.7 billion surpassed the Zacks Consensus Estimate of $1.6 billion. Also, the top line improved 26% year over year and 6.6% from the first-quarter fiscal 2021 level.
Strong performance delivered by the company across all end-markets, especially the industrial and automotive markets, drove the top line.
Revenues by End Markets
Industrial: The company generated revenues of $927.2 million (accounting for 59% of total revenues), which grew 36% year over year.
Communications: Revenues from the market were $276.9 million (17% of revenues), increasing 0.1% year over year.
Automotive: Revenues from the market summed $257.6 million (16% of revenues), up 42% from the year-ago quarter.
Consumer: The market generated revenues of $154.7 million (9% of revenues), reflecting 8% growth 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
Adjusted gross margin expanded 320basis points (bps) on a year-over-year basis to 70.9%.
Adjusted operating expenses were $483.7 million, up 23.9% from the year-ago quarter. As a percentage of revenues, adjusted operating expenses were 29.1%, contracting 50 bps year over year.
Adjusted operating margin expanded 370 bps on a year-over-year basis to 41.7% inthe reported quarter.
Balance Sheet & Cash Flow
As of May 1, 2021, cash and cash equivalents were $1.3 billion, up from $1.05 billionas of Jan 30, 2021.
Long-term debt was $3.8 billion at the end of the fiscal second quarter, down from $4.7 billion at the end of the fiscal first quarter.
Net cash provided by operations was $736.4 million in the reported quarter, up from $427.9 million in the prior quarter.
The company generated $677.2 million of free cash flow inthe fiscal second quarter.
Additionally, Analog Devices returned $443 million to its shareholders of which it made dividend payments worth $254 million and repurchased shares worth $189 million in the fiscal second quarter.
Guidance
For third-quarter fiscal 2021, the company expects revenues of $1.7 billion (+/- $70 million). The Zacks Consensus Estimate for the same is pegged at $1.65 billion.
Non-GAAP earnings are expected to be $1.61 (+/- $0.11) per share. The consensus mark for the same is pegged at $1.53 per share.
The company anticipates non-GAAP operating margins of 42.5% (+/- 100 bps).
Zacks Rank & Stocks to Consider
Currently, Analog Devices carry a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader technology sector are NVIDIA Corporation (NVDA - Free Report) , NXP Semiconductors N.V. (NXPI - Free Report) and Texas Instruments Incorporated (TXN - Free Report) . All companies carry a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Long-term earnings growth rates of NVIDIA, NXP Semiconductors and Texas Instruments are pegged at 15.23%, 10% and 9.33%, respectively.
5 Stocks Set to Double
Each was hand-picked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2020. Each comes from a different sector and has unique qualities and catalysts that could fuel exceptional growth.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
Today, See These 5 Potential Home Runs >>