Analog Devices Reports Strong Q1 Financial Results

By Bobby Samwell • Wednesday, February 21 15:48 • Permanent Link

Analog Devices, Inc. (NASDAQ: ADI) has reported its fiscal first quarter 2024 financial results, showcasing a revenue of over $2.5 billion and continued growth in the automotive sector. The company also demonstrated operating cash flow of $4.6 billion and free cash flow of $3.2 billion on a trailing twelve-month basis. Additionally, Analog Devices returned over $600 million to shareholders through dividends and repurchases in the first quarter and raised its quarterly dividend by 7%, marking the twentieth consecutive year of increase. The company appointed Richard C. Puccio as Executive Vice President and Chief Financial Officer.

Vincent Roche, CEO and Chair of Analog Devices, commented on the results, stating, "ADI delivered first quarter revenue and profitability above the midpoint of our outlook, despite the continued difficult macroeconomic environment. Consistent with our prior view, we expect customer inventory rationalization to largely subside in our second quarter, and thus enter the second half in a more favorable business backdrop. Importantly, we are well positioned to capitalize on the inevitable upswing given our replenished die banks, short lead times, and agile hybrid manufacturing model."

Roche also emphasized the company's strong position to pursue opportunities in the intelligent edge era, expressing confidence in their ability to drive shareholder value for many years to come.

In the 14-week first quarter of fiscal 2024, Analog Devices reported revenue of $2,513 million, representing a 23% decrease from the prior year. The company's gross margin percentage was 58.7%, down 670 basis points from the previous year. Operating income was $586 million, reflecting a 48% decrease from the same period in the prior year. Diluted earnings per share came in at $0.93, down 51% from the prior year.

Looking ahead to the second quarter of fiscal year 2024, the company is forecasting revenue of $2.10 billion, with reported and adjusted operating margins and earnings per share within specific ranges.

Analog Devices' shares have responded to the news, moving 2.0% and reaching a trading price of $193.14.

The company's full 8-K submission is available here.

The above analysis is intended for educational purposes only and was performed on the basis of publicly available data. It is not to be construed as a recommendation to buy or sell any security. Any buy, sell, or other recommendations mentioned in the article are direct quotations of consensus recommendations from the analysts covering the stock, and do not represent the opinions of Market Inference or its writers. Past performance, accounting data, and inferences about market position and corporate valuation are not reliable indicators of future price movements. Market Inference does not provide financial advice. Investors should conduct their own review and analysis of any company of interest before making an investment decision.