We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
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.
ADI Q1 Earnings Beat: Will a Strong Guidance Lift the Stock?
Read MoreHide Full Article
Analog Devices (ADI - Free Report) reported first-quarter fiscal 2025 non-GAAP earnings of $1.63 per share, which surpassed the Zacks Consensus Estimate by 5.8%. The bottom line came at the higher end of management’s guidance but declined 6% year over year
Analog Devices’ earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, with an average surprise of 4.86%.
Find the latest EPS estimates and surprises on Zacks Earnings Calendar.
Analog Devices’ first-quarter fiscal 2025 revenues of $2.42 billion beat the Zacks Consensus Estimate by 2.5% and came in line with management’s guidance.
While the consumer end market delivered a strong performance, the persistent weakness in the industrial, communications and automotive sectors has resulted in a 3.6% year-over-year decline in the top line.
However, the better-than-expected financial results prompted Analog Devices to provide optimistic guidance for the second quarter of fiscal 2025. Its second-quarter top line surpassed the Zacks Consensus Estimate while the bottom line matched the same.
The strong outlook is likely to boost ADI’s share price, which already surged 27.6% in the past year, outperforming the Zacks Semiconductor - Analog and Mixed industry's return of 4.6%.
Analog Devices, Inc. Price, Consensus and EPS Surprise
Stronger-than-expected performance in the consumer market was suppressed by softness in three other segments — industrial, communications and automotive.
Industrial: This end market generated revenues of $1.08 billion (accounting for 44% of the total revenues), which fell 10% year over year. The figure beat the Zacks Consensus Estimate of $1.02 million.
Communications:Revenues from the market were $289.86 million (12% of revenues), which decreased 4% from the year-ago quarter. The figure beat the Zacks Consensus Estimate of $273.3 million.
Automotive: Revenues from the market summed up to $732.5 million (30% of revenues), down 2% from the year-ago quarter. The figure missed the Zacks Consensus Estimate of $744.9 million.
Consumer: The market generated revenues of $323 million (13% of revenues), reflecting 19% growth from the year-ago quarter. The figure beat the Zacks Consensus Estimate of $309.7 million.
The adjusted gross margin contracted 20 basis points (bps) from the year-ago quarter to 68.8%. The adjusted operating margin was 40.5% in the reported quarter, which contracted 150 bps from the year-ago quarter.
Analog Devices’ Balance Sheet & Cash Flow
As of Feb. 1, 2025, cash and cash equivalents, and short-term investments were $2.72 billion, up from $2.36 billion as of Nov. 2, 2024.
The long-term debt was $6.61 billion at the end of the first quarter of fiscal 2025, slightly lower than $6.63 billion at the end of the fourth quarter of fiscal 2024.
Analog Devices generated operating cash flow and free cash flow of $1.13 billion and $977.8 million, respectively, in the first quarter.
During the first quarter, it repurchased shares worth $160 million and paid $456 million in dividends.
ADI Offers Strong Q2 Guidance
For second-quarter fiscal 2025, management expects net sales of $2.50 billion (+/- $100 million). The Zacks Consensus Estimate for the same is pegged at $2.47 billion, indicating year-over-year growth of 14.5%.
The company anticipates a non-GAAP operating margin of 24.2% (+/- 160 bps).
Non-GAAP earnings are expected to be $1.68 (+/-10 cents) per share. The consensus mark for the same is pinned at $1.68 per share, unchanged over the past 30 days, indicating a year-over-year rise of 11.3%.
The consensus mark for CLS’ 2025 earnings has been revised upward by 31 cents to $5.67 per share over the past 30 days, indicating a 6.78% year-over-year increase. CLS shares have risen 251.2% in the past year.
The consensus mark for CRWD’s 2025 earnings has been revised upward by a penny to $3.74 per share over the past 60 days, indicating a 21% year-over-year increase. CRWD shares have gained 39% in the past year.
The consensus mark for AKAM’s 2025 earnings has been revised downward by a penny to $6.76 per share over the past 30 days, indicating a 6.78% year-over-year decline. AKAM shares have declined 7.5% in the past year.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
ADI Q1 Earnings Beat: Will a Strong Guidance Lift the Stock?
Analog Devices (ADI - Free Report) reported first-quarter fiscal 2025 non-GAAP earnings of $1.63 per share, which surpassed the Zacks Consensus Estimate by 5.8%. The bottom line came at the higher end of management’s guidance but declined 6% year over year
Analog Devices’ earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, with an average surprise of 4.86%.
Find the latest EPS estimates and surprises on Zacks Earnings Calendar.
Analog Devices’ first-quarter fiscal 2025 revenues of $2.42 billion beat the Zacks Consensus Estimate by 2.5% and came in line with management’s guidance.
While the consumer end market delivered a strong performance, the persistent weakness in the industrial, communications and automotive sectors has resulted in a 3.6% year-over-year decline in the top line.
However, the better-than-expected financial results prompted Analog Devices to provide optimistic guidance for the second quarter of fiscal 2025. Its second-quarter top line surpassed the Zacks Consensus Estimate while the bottom line matched the same.
The strong outlook is likely to boost ADI’s share price, which already surged 27.6% in the past year, outperforming the Zacks Semiconductor - Analog and Mixed industry's return of 4.6%.
Analog Devices, Inc. Price, Consensus and EPS Surprise
Analog Devices, Inc. price-consensus-eps-surprise-chart | Analog Devices, Inc. Quote
Analog Devices’ Q1 Details
Stronger-than-expected performance in the consumer market was suppressed by softness in three other segments — industrial, communications and automotive.
Industrial: This end market generated revenues of $1.08 billion (accounting for 44% of the total revenues), which fell 10% year over year. The figure beat the Zacks Consensus Estimate of $1.02 million.
Communications:Revenues from the market were $289.86 million (12% of revenues), which decreased 4% from the year-ago quarter. The figure beat the Zacks Consensus Estimate of $273.3 million.
Automotive: Revenues from the market summed up to $732.5 million (30% of revenues), down 2% from the year-ago quarter. The figure missed the Zacks Consensus Estimate of $744.9 million.
Consumer: The market generated revenues of $323 million (13% of revenues), reflecting 19% growth from the year-ago quarter. The figure beat the Zacks Consensus Estimate of $309.7 million.
The adjusted gross margin contracted 20 basis points (bps) from the year-ago quarter to 68.8%. The adjusted operating margin was 40.5% in the reported quarter, which contracted 150 bps from the year-ago quarter.
Analog Devices’ Balance Sheet & Cash Flow
As of Feb. 1, 2025, cash and cash equivalents, and short-term investments were $2.72 billion, up from $2.36 billion as of Nov. 2, 2024.
The long-term debt was $6.61 billion at the end of the first quarter of fiscal 2025, slightly lower than $6.63 billion at the end of the fourth quarter of fiscal 2024.
Analog Devices generated operating cash flow and free cash flow of $1.13 billion and $977.8 million, respectively, in the first quarter.
During the first quarter, it repurchased shares worth $160 million and paid $456 million in dividends.
ADI Offers Strong Q2 Guidance
For second-quarter fiscal 2025, management expects net sales of $2.50 billion (+/- $100 million). The Zacks Consensus Estimate for the same is pegged at $2.47 billion, indicating year-over-year growth of 14.5%.
The company anticipates a non-GAAP operating margin of 24.2% (+/- 160 bps).
Non-GAAP earnings are expected to be $1.68 (+/-10 cents) per share. The consensus mark for the same is pinned at $1.68 per share, unchanged over the past 30 days, indicating a year-over-year rise of 11.3%.
Zacks Rank and Stocks to Consider
Currently, ADI carries a Zacks Rank #3 (Hold).
Celestica (CLS - Free Report) , CrowdStrike (CRWD - Free Report) and Akamai Technology (AKAM - Free Report) are some better-ranked stocks that investors can consider in the broader Zacks Computer & Technology sector. While CLS sports a Zacks Rank #1 (Strong Buy), CRWD and AKAM carry a Zacks Rank #2 (Buy) each at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The consensus mark for CLS’ 2025 earnings has been revised upward by 31 cents to $5.67 per share over the past 30 days, indicating a 6.78% year-over-year increase. CLS shares have risen 251.2% in the past year.
The consensus mark for CRWD’s 2025 earnings has been revised upward by a penny to $3.74 per share over the past 60 days, indicating a 21% year-over-year increase. CRWD shares have gained 39% in the past year.
The consensus mark for AKAM’s 2025 earnings has been revised downward by a penny to $6.76 per share over the past 30 days, indicating a 6.78% year-over-year decline. AKAM shares have declined 7.5% in the past year.