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) Q3 Earnings & Revenues Beat, Rise Y/Y
Read MoreHide Full Article
Analog Devices Inc. (ADI - Free Report) reported third-quarter fiscal 2022 adjusted earnings of $2.52 per share, beating the Zacks Consensus Estimate by 3.7%. The bottom line rose 47% year over year.
Revenues of $3.11 billion surpassed the Zacks Consensus Estimate of $3.06 billion. Also, the top line improved 77% year over year.
The strong performance delivered by Analog Devices across the industrial, automotive, consumer and communications markets drove the top line.
Although the pandemic-led supply challenges remained headwinds to ADI, its high-performance analog, mixed-signal and power portfolio contributed well.
Analog Devices, Inc. Price, Consensus and EPS Surprise
Industrial: Analog Devices generated revenues of $1.56 billion (accounting for 50% of the total revenues), which grew 55% year over year.
Communications: Revenues from the market were $490.7 million (16% of revenues), increasing 69% year over year.
Automotive: Revenues from the market summed $659.1 million (21% of revenues), up 127% from the year-ago quarter’s level.
Consumer: The market generated revenues of $404.98 million (13% of revenues), reflecting 136% growth on a year-over-year basis.
Operating Details
The adjusted gross margin expanded 250 basis points (bps) on a year-over-year basis to 74.1%.
Adjusted operating expenses were $746.6 million, up 51.5% from the year-ago quarter’s level. As a percentage of revenues, adjusted operating expenses were 24%, contracting 400 bps year over year.
The adjusted operating margin expanded 650 bps on a year-over-year basis to 50.1% in the reported quarter.
Balance Sheet & Cash Flow
As of Jul 30, 2022, cash and cash equivalents were $1.5 billion, down from $1.7 billion as of Apr 30, 2022.
Long-term debt was $6.252 billion at the end of the fiscal third quarter compared with $6.253 billion at the end of the fiscal second quarter.
Net cash provided by operations was $1.25 million in the reported quarter, up from $1.22 billion in the prior quarter.
ADI generated $1.08 billion of free cash flow in the fiscal third quarter.
Additionally, Analog Devices returned $1.3 billion to its shareholders, of which dividend payments account for $394 million and repurchased shares amount to $906 million in the fiscal third quarter.
Guidance
For fourth-quarter fiscal 2022, ADI expects revenues of $3.15 billion (+/- $100 million). The Zacks Consensus Estimate for the same is pegged at $3.11 billion.
Non-GAAP earnings are expected to be $2.57 (+/- $0.10) per share. The consensus mark for the same is pegged at $2.50 per share.
Analog Devices anticipates non-GAAP operating margins of 50.3% (+/- 70 bps).
Zacks Rank & Stocks to Consider
Currently, Analog Devices carries a Zacks Rank #4 (Sell).
Investors interested in the broader Zacks Computer & Technology sector can consider some better-ranked stocks like Arista Networks (ANET - Free Report) , Keysight Technologies (KEYS - Free Report) and ASE Technology (ASX - Free Report) . While Arista Networks sports a Zacks Rank #1 (Strong Buy), Keysight Technologies and ASE Technology carry a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Arista Networks has lost 9.6% in the year-to-date period. The long-term earnings growth rate for ANET is currently projected at 18.9%.
Keysight Technologies has lost 17.4% in the year-to-date period. KEYS’ long-term earnings growth rate is currently projected at 9.1%.
ASE technology has lost 19.2% in the year-to-date period. The long-term earnings growth rate for ASX is currently projected at 23.1%.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Analog Devices (ADI) Q3 Earnings & Revenues Beat, Rise Y/Y
Analog Devices Inc. (ADI - Free Report) reported third-quarter fiscal 2022 adjusted earnings of $2.52 per share, beating the Zacks Consensus Estimate by 3.7%. The bottom line rose 47% year over year.
Revenues of $3.11 billion surpassed the Zacks Consensus Estimate of $3.06 billion. Also, the top line improved 77% year over year.
The strong performance delivered by Analog Devices across the industrial, automotive, consumer and communications markets drove the top line.
Although the pandemic-led supply challenges remained headwinds to ADI, its high-performance analog, mixed-signal and power portfolio contributed well.
Analog Devices, Inc. Price, Consensus and EPS Surprise
Analog Devices, Inc. price-consensus-eps-surprise-chart | Analog Devices, Inc. Quote
Revenues by End Markets
Industrial: Analog Devices generated revenues of $1.56 billion (accounting for 50% of the total revenues), which grew 55% year over year.
Communications: Revenues from the market were $490.7 million (16% of revenues), increasing 69% year over year.
Automotive: Revenues from the market summed $659.1 million (21% of revenues), up 127% from the year-ago quarter’s level.
Consumer: The market generated revenues of $404.98 million (13% of revenues), reflecting 136% growth on a year-over-year basis.
Operating Details
The adjusted gross margin expanded 250 basis points (bps) on a year-over-year basis to 74.1%.
Adjusted operating expenses were $746.6 million, up 51.5% from the year-ago quarter’s level. As a percentage of revenues, adjusted operating expenses were 24%, contracting 400 bps year over year.
The adjusted operating margin expanded 650 bps on a year-over-year basis to 50.1% in the reported quarter.
Balance Sheet & Cash Flow
As of Jul 30, 2022, cash and cash equivalents were $1.5 billion, down from $1.7 billion as of Apr 30, 2022.
Long-term debt was $6.252 billion at the end of the fiscal third quarter compared with $6.253 billion at the end of the fiscal second quarter.
Net cash provided by operations was $1.25 million in the reported quarter, up from $1.22 billion in the prior quarter.
ADI generated $1.08 billion of free cash flow in the fiscal third quarter.
Additionally, Analog Devices returned $1.3 billion to its shareholders, of which dividend payments account for $394 million and repurchased shares amount to $906 million in the fiscal third quarter.
Guidance
For fourth-quarter fiscal 2022, ADI expects revenues of $3.15 billion (+/- $100 million). The Zacks Consensus Estimate for the same is pegged at $3.11 billion.
Non-GAAP earnings are expected to be $2.57 (+/- $0.10) per share. The consensus mark for the same is pegged at $2.50 per share.
Analog Devices anticipates non-GAAP operating margins of 50.3% (+/- 70 bps).
Zacks Rank & Stocks to Consider
Currently, Analog Devices carries a Zacks Rank #4 (Sell).
Investors interested in the broader Zacks Computer & Technology sector can consider some better-ranked stocks like Arista Networks (ANET - Free Report) , Keysight Technologies (KEYS - Free Report) and ASE Technology (ASX - Free Report) . While Arista Networks sports a Zacks Rank #1 (Strong Buy), Keysight Technologies and ASE Technology carry a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Arista Networks has lost 9.6% in the year-to-date period. The long-term earnings growth rate for ANET is currently projected at 18.9%.
Keysight Technologies has lost 17.4% in the year-to-date period. KEYS’ long-term earnings growth rate is currently projected at 9.1%.
ASE technology has lost 19.2% in the year-to-date period. The long-term earnings growth rate for ASX is currently projected at 23.1%.