In This Article:
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Revenue: $2.42 billion, a 1% sequential decrease and a 4% decline year-over-year.
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Industrial Revenue: 44% of total revenue, up 1% sequentially.
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Automotive Revenue: 30% of total revenue, up 2% sequentially.
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Communications Revenue: 12% of total revenue, up 6% sequentially.
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Consumer Revenue: 13% of total revenue, down 15% sequentially.
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Gross Margin: 68.8%, up 90 basis points sequentially.
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Operating Margin: 40.5%.
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Adjusted EPS: $1.63.
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Cash and Short-term Investments: $2.7 billion.
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Net Leverage Ratio: 1.1.
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Inventory: Increased by $27 million sequentially; Days of inventory at 176.
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Operating Cash Flow (TTM): $3.8 billion.
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CapEx (TTM): $656 million.
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Free Cash Flow (TTM): $3.2 billion or 34% of revenue.
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Dividend Increase: 8% increase to $0.99 per share.
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Share Repurchase Authorization: Additional $10 billion authorized, totaling $11.5 billion available.
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Q2 Revenue Guidance: $2.5 billion, plus or minus $100 million.
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Q2 Adjusted EPS Guidance: $1.68, plus or minus $0.10.
Release Date: February 19, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Analog Devices Inc (NASDAQ:ADI) reported first quarter revenue, profitability, and earnings per share above the midpoint of their outlook.
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The company increased its dividend for the 21st consecutive year, highlighting a strong capital return program.
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ADI is well-positioned for sustained recovery in the semiconductor cycle, with normalized inventory levels and improved customer engagements.
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The company anticipates double-digit growth in several sectors, including industrial automation, surgical robotics, and automotive.
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ADI's hybrid manufacturing model and strategic investments have enhanced their ability to meet dynamic customer needs and support growth.
Negative Points
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Despite positive results, ADI continues to operate in a challenging macro and geopolitical environment.
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The company experienced a 4% year-over-year revenue decline in the first quarter, adjusting for an extra week in fiscal Q1 2024.
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Consumer revenue was down 15% sequentially, reflecting seasonal latency.
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Wireless revenue continues to face demand challenges, impacting the communications segment.
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The macroeconomic environment remains uncertain, which could influence the pace of ADI's recovery and growth.
Q & A Highlights
Q: Can you discuss the impact of the shift towards China in the auto market and how it affects ADI in terms of pricing and margins? A: Richard Puccio, CFO, explained that ADI has a strong share and content position with major Chinese EV OEMs, which is reflected in their results. Vincent Roche, CEO, added that ADI's high-performance technologies remain relevant and are well-compensated in the market, despite competitive pressures.