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Analog Devices (ADI) Q1 Earnings & Revenues Beat, Rise Y/Y
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Analog Devices Inc. (ADI - Free Report) reported first-quarter fiscal 2023 adjusted earnings of $2.75 per share, beating the Zacks Consensus Estimate by 6.2%. The bottom line rose 42% from the year-ago quarter’s reported figure.
Revenues of $3.25 billion surpassed the Zacks Consensus Estimate of $3.14 billion. The top line improved 21% from the year-ago quarter’s reported figure.
The strong performance delivered by Analog Devices across the industrial, automotive and communications markets drove the top line.
Analog Devices, Inc. Price, Consensus and EPS Surprise
Industrial: Analog Devices generated revenues of $1.69 billion (accounting for 52% of the total revenues), which grew 26% year over year.
Communications: Revenues from the market were $487.99 million (15% of revenues), increasing 18% from the year-ago quarter’s reported figure.
Automotive: Revenues from the market summed up to $718.2 million (22% of revenues), up 29% from the year-ago quarter’s level.
Consumer: The market generated revenues of $353.3 million (11% of revenues), reflecting a 5% decline from the year-ago quarter’s reported figure.
Operating Details
The adjusted gross margin expanded 170 basis points (bps) from the year-ago quarter’s level to 73.6%.
Adjusted operating expenses were $732.9 million, up 4.3% from the year-ago quarter’s level. As a percentage of revenues, adjusted operating expenses were 22.6%, contracting 360 bps year over year.
The adjusted operating margin expanded 530 bps on a year-over-year basis to 51.1% in the reported quarter.
Balance Sheet & Cash Flow
As of Jan 28, 2023, cash and cash equivalents were $1.67 billion, up from $1.47 billion as of Oct 29, 2022.
Long-term debt was $6.54 billion at the end of the fiscal first quarter compared with $6.55 billion at the end of the fiscal fourth quarter.
Net cash provided by operations was $1.41 million in the reported quarter, up from $1.15 billion in the prior quarter.
ADI generated $1.23 billion of free cash flow in the fiscal first quarter.
Additionally, Analog Devices returned $1.04 billion to its shareholders in the fiscal first quarter, of which dividend payments accounted for $385 million and repurchased shares amounted to $655 million.
Guidance
For second-quarter fiscal 2023, ADI expects revenues of $3.20 billion (+/- $100 million). The Zacks Consensus Estimate for the same is pegged at $3.01 billion.
Non-GAAP earnings are expected to be $2.75 (+/- $0.10) per share. The consensus mark for the same is pegged at $2.40 per share.
Analog Devices anticipates non-GAAP operating margins of 51% (+/- 70 bps).
Zacks Rank & Stocks to Consider
Currently, Analog Devices carries a Zacks Rank #3 (Hold).
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Analog Devices (ADI) Q1 Earnings & Revenues Beat, Rise Y/Y
Analog Devices Inc. (ADI - Free Report) reported first-quarter fiscal 2023 adjusted earnings of $2.75 per share, beating the Zacks Consensus Estimate by 6.2%. The bottom line rose 42% from the year-ago quarter’s reported figure.
Revenues of $3.25 billion surpassed the Zacks Consensus Estimate of $3.14 billion. The top line improved 21% from the year-ago quarter’s reported figure.
The strong performance delivered by Analog Devices across the industrial, automotive and communications markets drove the top line.
Analog Devices, Inc. Price, Consensus and EPS Surprise
Analog Devices, Inc. price-consensus-eps-surprise-chart | Analog Devices, Inc. Quote
Revenues by End Markets
Industrial: Analog Devices generated revenues of $1.69 billion (accounting for 52% of the total revenues), which grew 26% year over year.
Communications: Revenues from the market were $487.99 million (15% of revenues), increasing 18% from the year-ago quarter’s reported figure.
Automotive: Revenues from the market summed up to $718.2 million (22% of revenues), up 29% from the year-ago quarter’s level.
Consumer: The market generated revenues of $353.3 million (11% of revenues), reflecting a 5% decline from the year-ago quarter’s reported figure.
Operating Details
The adjusted gross margin expanded 170 basis points (bps) from the year-ago quarter’s level to 73.6%.
Adjusted operating expenses were $732.9 million, up 4.3% from the year-ago quarter’s level. As a percentage of revenues, adjusted operating expenses were 22.6%, contracting 360 bps year over year.
The adjusted operating margin expanded 530 bps on a year-over-year basis to 51.1% in the reported quarter.
Balance Sheet & Cash Flow
As of Jan 28, 2023, cash and cash equivalents were $1.67 billion, up from $1.47 billion as of Oct 29, 2022.
Long-term debt was $6.54 billion at the end of the fiscal first quarter compared with $6.55 billion at the end of the fiscal fourth quarter.
Net cash provided by operations was $1.41 million in the reported quarter, up from $1.15 billion in the prior quarter.
ADI generated $1.23 billion of free cash flow in the fiscal first quarter.
Additionally, Analog Devices returned $1.04 billion to its shareholders in the fiscal first quarter, of which dividend payments accounted for $385 million and repurchased shares amounted to $655 million.
Guidance
For second-quarter fiscal 2023, ADI expects revenues of $3.20 billion (+/- $100 million). The Zacks Consensus Estimate for the same is pegged at $3.01 billion.
Non-GAAP earnings are expected to be $2.75 (+/- $0.10) per share. The consensus mark for the same is pegged at $2.40 per share.
Analog Devices anticipates non-GAAP operating margins of 51% (+/- 70 bps).
Zacks Rank & Stocks to Consider
Currently, Analog Devices carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader Zacks Computer & Technology sector are Agilent Technologies (A - Free Report) , Arista Networks (ANET - Free Report) and Garmin (GRMN - Free Report) , all of which carry a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Agilent has gained 8.4% in the past year. A’s long-term earnings growth rate is projected at 10%.
Arista Networks has gained 6.1% in the past year. The long-term earnings growth rate for ANET is projected at 17.5%.
Garmin has lost 24.6% in the past year. The long-term earnings growth rate for GRMN is projected at 5.6%.