Analog Devices, Inc. has reported its financial results for the fourth quarter and fiscal year 2024, which ended on November 2, 2024. The company's fourth quarter revenue stood at $2.443 billion, showing a 10% decrease from the same period last year. For the fiscal year 2024, the revenue was more than $9.4 billion, marking a 23% decrease from fiscal year 2023.
The gross margin for the fourth quarter was $1.416 billion, down 14% from the prior year's fourth quarter, while the gross margin percentage decreased by 260 basis points. For the fiscal year 2024, the gross margin was $5.381 billion, representing a 32% decrease from fiscal year 2023, with the gross margin percentage dropping by 690 basis points.
The operating income for the fourth quarter was $569 million, down 10% from the same period in the previous year. The operating margin for the fourth quarter was 23.3%, a slight decrease of 10 basis points. However, for the fiscal year 2024, the operating income was $2.033 billion, marking a significant 47% decrease from fiscal year 2023, and the operating margin decreased by 950 basis points.
The diluted earnings per share for the fourth quarter were $0.96, showing a 4% decrease from the same period in the prior year. For the fiscal year 2024, the diluted earnings per share were $3.28, marking a substantial 50% decrease from fiscal year 2023.
On an adjusted basis, the gross margin for the fourth quarter was $1.660 billion, down 13% from the prior year's fourth quarter, and the gross margin percentage decreased by 230 basis points. For the fiscal year 2024, the adjusted gross margin was $6.404 billion, representing a 28% decrease from fiscal year 2023, with the gross margin percentage dropping by 460 basis points.
The adjusted operating income for the fourth quarter was $1.005 billion, down 17% from the same period in the previous year, and the adjusted operating margin decreased by 360 basis points. For the fiscal year 2024, the adjusted operating income was $3.853 billion, marking a 36% decrease from fiscal year 2023, and the adjusted operating margin decreased by 800 basis points.
The adjusted diluted earnings per share for the fourth quarter were $1.67, showing a 17% decrease from the same period in the prior year. For the fiscal year 2024, the adjusted diluted earnings per share were $6.38, marking a significant 37% decrease from fiscal year 2023.
In terms of cash generation, the net cash provided by operating activities for the trailing twelve months ending November 2, 2024, was $3.853 billion, representing 41% of revenue. The free cash flow for the same period was $3.122 billion, accounting for 33% of revenue.
Moreover, Analog Devices returned more than $2.4 billion to shareholders in fiscal year 2024, including $0.6 billion of share repurchases and $1.8 billion of dividends.
Looking ahead, the company is forecasting revenue of $2.35 billion, plus or minus $100 million, for the first quarter of fiscal year 2025. At the midpoint of this revenue outlook, reported operating margin is expected to be approximately 22.0%, plus or minus 130 basis points, and adjusted operating margin to be approximately 40.0%, plus or minus 100 basis points. Reported EPS is expected to be $0.80, plus or minus $0.10, and adjusted EPS to be $1.53, plus or minus $0.10.
Analog Devices remains cautiously optimistic about a strong growth year in fiscal 2025 despite ongoing macro uncertainty. Following these announcements, the company's shares moved -3.3%, and are now trading at a price of $216.17. For the full picture, make sure to review Analog Devices's 8-K report.
