Analog Devices, Inc. (NASDAQ: ADI) has reported its fiscal third quarter 2024 financial results, noting a revenue of $2.31 billion. This figure exceeded the midpoint of the company's outlook and reflected sequential growth in industrial, consumer, and communications sectors. The operating cash flow for the trailing twelve-month period was reported to be $4.0 billion, while the free cash flow stood at $2.9 billion.
In terms of returns to shareholders, the company allocated $574 million through dividends and repurchases in the third quarter of fiscal 2024. Vincent Roche, CEO and Chair of Analog Devices, expressed satisfaction with the revenue performance, citing stronger profitability that led to earnings per share nearing the high end of the outlook. Richard Puccio, CFO, highlighted improved customer inventory levels and order momentum across most markets, indicating confidence in sequential growth in the fourth quarter.
The financial results for the third quarter of fiscal 2024 illustrate significant changes compared to the prior period. Revenue saw a 25% decrease from the previous year, amounting to $2,312 million. Gross margin and gross margin percentage also experienced declines of 33% and 710 basis points, respectively. Operating income and operating margin decreased by 47% and 900 basis points, presenting a notable shift in profitability. Diluted earnings per share followed suit, declining by 55% to $0.79.
Adjusted results further emphasized the changes, with adjusted gross margin, adjusted operating income, and adjusted diluted earnings per share declining by 29%, 35%, and 37%, respectively. The percentage of revenue from net cash provided by operating activities and free cash flow for the trailing twelve-month period was 37% and 30%, both showcasing a decrease compared to the prior period.
The cash return to shareholders also witnessed a shift, with dividend paid and stock repurchases amounting to $(456) million and $(118) million, resulting in a total cash return of $(574) million. This marks a significant change from the prior period, reflecting a decrease in the amount returned to shareholders.
Looking ahead, Analog Devices forecasts a revenue of $2.40 billion for the fourth quarter of fiscal 2024, with reported and adjusted operating margins expected to be approximately 22.3% and 41.0%, respectively. The reported and adjusted earnings per share are projected to be $0.85 and $1.63, respectively.
The market has reacted to these announcements by moving the company's shares 1.4% to a price of $226.62. For more information, read the company's full 8-K submission here.
