Analog Devices (NASDAQ: ADI) reported its financial results for the fiscal third quarter of 2024, exceeding expectations in key areas. The company achieved a revenue of $2.31 billion, surpassing its outlook midpoint, with sequential growth in its Industrial, Consumer, and Communications segments. Operating cash flow for the quarter was $4.0 billion, and free cash flow stood at $2.9 billion on a trailing twelve-month basis.
The company returned $574 million to shareholders through dividends and repurchases during this period. CEO and Chair Vincent Roche highlighted that ADI’s revenue exceeded their guided midpoint, with stronger profitability driving earnings per share near the high end of their outlook. This performance reflects the company’s high-performance analog solutions portfolio aligned with secular trends, positioning ADI for long-term shareholder value.
CFO Richard Puccio noted improved customer inventory levels and order momentum across most markets, boosting confidence in sequential growth for the fourth quarter amidst economic and geopolitical uncertainties.
Analog Devices Beat EPS and Revenue Expectations in Q3
The financial results for the third quarter of fiscal 2024 showed that Analog Devices performed better than expected. The company reported an adjusted diluted earnings per share (EPS) of $1.58, higher than the expected $1.51, indicating strong profitability despite challenging market conditions. Revenue of $2.31 billion exceeded the anticipated $2.27 billion, showcasing the company’s ability to capitalize on growth opportunities in core segments. However, compared to the same period last year, revenue declined by 25%.
Despite declines in gross margin percentage and operating income, Analog Devices delivered better-than-expected results for the quarter, demonstrating resilience in a recovering market.
Guidance
For the fourth quarter of fiscal 2024, Analog Devices forecasts a revenue of $2.40 billion, with an expected operating margin of approximately 22.3%. Adjusted operating margin is anticipated to be around 41.0%. The company projects reported EPS to be $0.85 and adjusted EPS to be $1.63. This guidance reflects the company’s cautious optimism amid economic and geopolitical uncertainties.
Analysis: Analog Devices outperformed expectations in Q3, showing strength in revenue and profitability despite market challenges. The company’s strategic focus on high-performance analog solutions and alignment with secular trends bode well for long-term shareholder value. Moving forward, continued growth opportunities in core segments and improving market conditions position Analog Devices for sustained success.