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Analog Devices (ADI) Q1 Earnings & Revenues Beat, Fall Y/Y
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Analog Devices Inc. (ADI - Free Report) has reported first-quarter fiscal 2024 adjusted earnings of $1.73 per share, which surpassed the Zacks Consensus Estimate by 1.2%. The bottom line declined 37% from the year-ago quarter.
Revenues of $2.51 billion beat the Zacks Consensus Estimate of $2.50 billion. The top line fell 23% from the year-ago quarter.
Softness in the communications, consumer and industrial markets was a major negative.
Nevertheless, the company witnessed strong momentum across the automotive markets in the reported quarter.
Analog Devices, Inc. Price, Consensus and EPS Surprise
Industrial: The market generated revenues of $1.19 billion (accounting for 48% of the total revenues), which fell 31% year over year. The figure missed the Zacks Consensus Estimate of $1.21 million.
Communications: Revenues from the market were $302.57 million (12% of revenues), decreasing 37% from the year-ago quarter. The figure lagged the Zacks Consensus Estimate of $319 million.
Automotive: Revenues from the market summed up to $739.16 million (29% of revenues), up 9% from the year-ago quarter. The figure surpassed the Zacks Consensus Estimate of $697 million.
Consumer: The market generated revenues of $274.14 million (11% of revenues), reflecting a 22% decline from the year-ago quarter. The figure beat the Zacks Consensus Estimate of $268 million.
Operating Details
The adjusted gross margin contracted 460 basis points (bps) from the year-ago quarter to 69%.
Adjusted operating expenses were $679.41 million, down 7.3% from the year-ago quarter. As a percentage of revenues, adjusted operating expenses were 27%, expanding 440 bps year over year.
The adjusted operating margin contracted 910 bps on a year-over-year basis to 42% in the reported quarter.
Balance Sheet & Cash Flow
As of Feb 3, 2024, cash and cash equivalents were $1.3 billion, up from $958.1 million as of Oct 28, 2023.
The long-term debt was $5.95 billion at the end of first-quarter fiscal 2024 compared with $5.90 billion at the end of fourth-quarter fiscal 2023.
Net cash provided by operations was $1.14 billion in the reported quarter, down from $1.19 billion in the prior fiscal quarter.
ADI generated $916 million of free cash flow in the fiscal first quarter.
Analog Devices returned $606 million to its shareholders in the fiscal first quarter, of which dividend payments accounted for $426 million and repurchased shares amounted to $180 million.
Guidance
For second-quarter fiscal 2024, ADI expects revenues of $2.10 billion (+/- $100 million). The Zacks Consensus Estimate for the same is pegged at $2.40 billion.
Non-GAAP earnings are expected to be $1.26 (+/- $0.10) per share. The consensus mark for the same is pinned at $1.63 per share.
Analog Devices anticipates a non-GAAP operating margin of 37% (+/- 100 bps).
Zacks Rank & Stocks to Consider
Currently, Analog Devices carries a Zacks Rank #4 (Sell).
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Analog Devices (ADI) Q1 Earnings & Revenues Beat, Fall Y/Y
Analog Devices Inc. (ADI - Free Report) has reported first-quarter fiscal 2024 adjusted earnings of $1.73 per share, which surpassed the Zacks Consensus Estimate by 1.2%. The bottom line declined 37% from the year-ago quarter.
Revenues of $2.51 billion beat the Zacks Consensus Estimate of $2.50 billion. The top line fell 23% from the year-ago quarter.
Softness in the communications, consumer and industrial markets was a major negative.
Nevertheless, the company witnessed strong momentum across the automotive markets in the reported quarter.
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: The market generated revenues of $1.19 billion (accounting for 48% of the total revenues), which fell 31% year over year. The figure missed the Zacks Consensus Estimate of $1.21 million.
Communications: Revenues from the market were $302.57 million (12% of revenues), decreasing 37% from the year-ago quarter. The figure lagged the Zacks Consensus Estimate of $319 million.
Automotive: Revenues from the market summed up to $739.16 million (29% of revenues), up 9% from the year-ago quarter. The figure surpassed the Zacks Consensus Estimate of $697 million.
Consumer: The market generated revenues of $274.14 million (11% of revenues), reflecting a 22% decline from the year-ago quarter. The figure beat the Zacks Consensus Estimate of $268 million.
Operating Details
The adjusted gross margin contracted 460 basis points (bps) from the year-ago quarter to 69%.
Adjusted operating expenses were $679.41 million, down 7.3% from the year-ago quarter. As a percentage of revenues, adjusted operating expenses were 27%, expanding 440 bps year over year.
The adjusted operating margin contracted 910 bps on a year-over-year basis to 42% in the reported quarter.
Balance Sheet & Cash Flow
As of Feb 3, 2024, cash and cash equivalents were $1.3 billion, up from $958.1 million as of Oct 28, 2023.
The long-term debt was $5.95 billion at the end of first-quarter fiscal 2024 compared with $5.90 billion at the end of fourth-quarter fiscal 2023.
Net cash provided by operations was $1.14 billion in the reported quarter, down from $1.19 billion in the prior fiscal quarter.
ADI generated $916 million of free cash flow in the fiscal first quarter.
Analog Devices returned $606 million to its shareholders in the fiscal first quarter, of which dividend payments accounted for $426 million and repurchased shares amounted to $180 million.
Guidance
For second-quarter fiscal 2024, ADI expects revenues of $2.10 billion (+/- $100 million). The Zacks Consensus Estimate for the same is pegged at $2.40 billion.
Non-GAAP earnings are expected to be $1.26 (+/- $0.10) per share. The consensus mark for the same is pinned at $1.63 per share.
Analog Devices anticipates a non-GAAP operating margin of 37% (+/- 100 bps).
Zacks Rank & Stocks to Consider
Currently, Analog Devices carries a Zacks Rank #4 (Sell).
Some better-ranked stocks in the broader technology sector are CrowdStrike (CRWD - Free Report) , Badger Meter (BMI - Free Report) and AMETEK (AME - Free Report) . CrowdStrike currently sports a Zacks Rank #1 (Strong Buy), and Badger Meter and AMETEK carry a Zacks Rank #2 (Buy) each. You can see the complete list of today’s Zacks #1 Rank stocks here.
Shares of CrowdStrike have gained 31% in the year-to-date period. The long-term earnings growth rate for CRWD is 36.07%
Shares of Badger Meter have lost 0.6% in the year-to-date period. The long-term earnings growth rate for BMI is 12.27%.
Shares of AMETEK have gained 5.2% in the year-to-date period. The long-term earnings growth rate for AME is 9.19%.