Financial Data and Key Metrics - Revenue for fiscal year 2024 was $9.4 billion, with earnings per share (EPS) of $6.38 [6] - Operating margin for the year was 41%, and free cash flow margin improved to 33% from 29% in fiscal 2023 [7] - Q4 revenue was $2.44 billion, a 6% sequential increase but a 10% year-over-year decline [22] - Q4 EPS was $1.67, above the midpoint of the outlook [26] - Operating cash flow for fiscal 2024 was $3.8 billion, with free cash flow of $3.1 billion [28] Business Line Performance - **Industrial**: Represented 44% of Q4 revenue, up 2% sequentially but down 21% year-over-year. Full-year Industrial revenue decreased 35% from fiscal 2023, with strong performance in AI-related test, Aerospace, and Defense [22] - **Automotive**: Represented 29% of Q4 revenue, up 4% sequentially but down 2% year-over-year. Full-year Automotive revenue declined 2%, with growth in functionally safe power and connectivity franchises offset by inventory digestion [23] - **Communications**: Represented 11% of Q4 revenue, up 4% sequentially but down 18% year-over-year. Full-year Communications revenue decreased 33%, with wireline outperforming wireless [24] - **Consumer**: Represented 16% of Q4 revenue, up 22% sequentially and 31% year-over-year. Full-year Consumer revenue decreased 1%, with growth in wearables and portable applications [24][25] Market Performance - **China**: Strong demand in China, particularly in the automotive sector, drove sequential growth in Q4. China represents about 80% of the company's revenue in the region, with industrial and automotive being the largest contributors [36][39] - **Global**: Aerospace and Defense remained resilient, with double-digit growth expected in fiscal 2025. Automotive demand improved in the U.S., driven by battery management systems (BMS) and wireless BMS solutions [14][36] Strategic Direction and Industry Competition - The company is investing in R&D, digital software, and AI to enhance its analog foundation and expand innovation capabilities. Recent launches include CodeFusion Studio and ADI Assure Trusted Edge Security Architecture [8][9] - The company is focusing on high-growth areas such as AI-related test, healthcare, and data center power, aiming for $1 billion in revenue synergies by 2027 [9] - A hybrid manufacturing model has been developed, with $2.7 billion invested in CapEx since acquiring Maxim. This model provides flexibility and resilience, with swing capacity expected to reach 70% of revenue in the coming years [18] Management Commentary on Operating Environment and Future Outlook - The company expects gradual recovery in fiscal 2025, with industrial leading the recovery, followed by consumer, communications, and automotive [41][45] - Gross margins are expected to improve as revenue grows, with a target of 70% gross margin achievable at $2.7 billion in revenue [64] - The company plans to return 100% of free cash flow to shareholders in fiscal 2025, after increasing balance sheet cash in fiscal 2024 [31] Other Important Information - Inventory levels decreased by 11 days to 167 days, with channel inventory slightly below the target range of 7-8 weeks [27] - The company returned $2.4 billion to shareholders in fiscal 2024 through dividends and share repurchases [28] Q&A Session Summary Question: Strength in the automotive sector, particularly in China [35] - **Answer**: Strong demand in China, driven by EV volume growth and share gains, contributed to the sequential improvement in Q4. The U.S. also saw growth in BMS and wireless BMS solutions [36][37] Question: Recovery trajectory for fiscal 2025 and beyond [40] - **Answer**: Industrial is expected to lead the recovery, followed by consumer, communications, and automotive. The company anticipates a return to growth in Q2 2025 [41][45] Question: Industrial segment performance and growth outlook [47] - **Answer**: Industrial revenue was lower than expected in Q4 due to weak demand and inventory reductions. However, the company expects growth to resume in fiscal 2025, driven by undershipping demand and improving macros [48][49] Question: Automotive pricing and growth areas [51] - **Answer**: Pricing remains stable, with growth expected in functionally safe power, GMSL, and A2B connectivity. BMS is expected to return to growth in fiscal 2025 [54][55] Question: Differentiation in AI and software capabilities [57] - **Answer**: The company is leveraging software to enhance its analog and mixed-signal solutions, with recent launches including CodeFusion Studio and ADI Assure for cybersecurity [58][59][60] Question: Gross margin trajectory [63] - **Answer**: Gross margins are expected to improve as revenue grows, with 70% achievable at $2.7 billion in revenue. Seasonal factors and mix will impact Q1 margins [64][65] Question: Seasonal trends and book-to-bill ratio [67] - **Answer**: Seasonal growth in Q2 is typically low to mid-single digits. Book-to-bill was slightly below 1 in Q4, reflecting seasonal trends [68] Question: Long-term growth potential and inventory cycle [72] - **Answer**: The company is well-positioned for double-digit growth through the decade, with a strong pipeline and improved customer relationships. Fiscal 2025 is expected to show progress toward fiscal 2023 levels [73] Question: Data center power management opportunities [75] - **Answer**: The company is focusing on high-end power and control solutions for data centers, with traction in optical control and energy solutions [76][77] Question: Utilization rates and margin impact [79] - **Answer**: Utilization rates have improved modestly and are expected to increase as revenue grows in fiscal 2025 [80]

Key TakeawaysAnalog Devices beat profit and sales estimates as demand for chips picked up in its fiscal fourth quarter.The company got a boost from sales of semiconductors used in the automotive sector.CFO Richard Puccio said Analog Devices continues to face "macroeconomic uncertainty." Shares of Analog Devices (ADI) advanced Tuesday as the semiconductor maker posted better-than-anticipated results on a pickup in demand for automotive chips. The company reported fiscal fourth-quarter adjusted earnings per s ...

For the quarter ended October 2024, Analog Devices (ADI) reported revenue of $2.44 billion, down 10.1% over the same period last year. EPS came in at $1.67, compared to $2.01 in the year-ago quarter. The reported revenue compares to the Zacks Consensus Estimate of $2.41 billion, representing a surprise of +1.51%. The company delivered an EPS surprise of +1.83%, with the consensus EPS estimate being $1.64. While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and ...

Analog Devices (ADI) came out with quarterly earnings of $1.67 per share, beating the Zacks Consensus Estimate of $1.64 per share. This compares to earnings of $2.01 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of 1.83%. A quarter ago, it was expected that this semiconductor maker would post earnings of $1.50 per share when it actually produced earnings of $1.58, delivering a surprise of 5.33%. Over the last four quarters, th ...

About this content About Oliver Haill Oliver has been writing about companies and markets since the early 2000s, cutting his teeth as a financial journalist at Growth Company Investor with a focusing on AIM companies and small caps, before a few years later becoming a section editor and then head of research. He joined Proactive after a couple of years freelancing, where he worked for the Financial Times Group, ITV, Press Association, Reuters sports desk, the London Olympic News Service, Rugby World Cup ...

Revenue Performance - Fourth quarter revenue exceeded $2.4 billion, showing sequential growth across all end markets[2] - Fiscal 2024 revenue reached over $9.4 billion, with operating cash flow of $3.9 billion and free cash flow of $3.1 billion[2] - Revenue for the three months ended November 2, 2024, was $2,443,205, a decrease of 10% compared to $2,716,484 for the same period in 2023[22] - Total revenue for the three months ended November 2, 2024, was $2,443,205,000, representing a 10% year-over-year decline from $2,716,484,000[29] - Total revenue for the twelve months ended October 28, 2023, was $12,305,539,000, a decrease of 23% year-over-year[29] - Revenue for the trailing twelve months ended November 2, 2024, was $9,427,157, with a quarterly revenue of $2,443,205 for the three months ended October 28, 2023[31] - The company expects revenue for the three months ending February 1, 2025, to be approximately $2.35 billion, with an operating margin of 22.0%[32] Profitability Metrics - Adjusted diluted earnings per share for the fourth quarter was $1.67, a decrease of 17% year-over-year[5] - Adjusted gross margin percentage for fiscal 2024 was 67.9%, down 460 basis points compared to the previous year[5] - Operating income for the three months ended November 2, 2024, was $569,392, compared to $634,415 for the same period in 2023, indicating a decrease of approximately 10%[22] - Net income for the three months ended November 2, 2024, was $478,072, down from $498,430 in the same period last year, representing a decline of about 4%[22] - Basic earnings per share for the three months ended November 2, 2024, was $0.96, compared to $1.00 for the same period in 2023[22] - Gross margin for the three months ended November 2, 2024, was $1,416,128, down from $1,646,716 in the prior year, reflecting a gross margin percentage decline[22] - Gross margin percentage for the three months ended October 28, 2023, was 60.6%, compared to 58.0% for the same period last year[30] - Adjusted operating income for the twelve months ended October 28, 2023, was $6,014,423, reflecting an adjusted operating margin of 48.9%[30] Shareholder Returns - The company returned over $2.4 billion to shareholders in fiscal 2024, including $1.8 billion in dividends[2] - The board declared a quarterly cash dividend of $0.92 per share, payable on December 20, 2024[10] Cash Flow and Assets - Net cash provided by operating activities for the twelve months ended October 28, 2023, was $4,817,634,000, which is 39% of total revenue[26] - Free cash flow for the twelve months ended November 2, 2024, was $3,122,066, representing 33% of revenue[31] - Cash and cash equivalents at the end of the period were $1,991,342,000[26] - Total current assets increased to $5,484,654 as of November 2, 2024, from $4,384,022 as of October 28, 2023, reflecting a growth of approximately 25%[24] - Total assets decreased to $48,228,277 as of November 2, 2024, from $48,794,478 as of October 28, 2023, indicating a reduction of about 1.2%[24] - Long-term debt increased to $6,634,313 as of November 2, 2024, compared to $5,902,457 as of October 28, 2023, representing an increase of approximately 12.4%[24] Market Segmentation - Industrial revenue decreased by 21% year-over-year to $1,070,978,000, accounting for 44% of total revenue[29] - Automotive revenue was $716,964,000, a slight decrease of 2% year-over-year, representing 29% of total revenue[29] - Consumer revenue increased by 31% year-over-year to $379,690,000, making up 16% of total revenue[29] Strategic Focus - The company plans to continue strategic investments in engineering, manufacturing, and customer experience to drive long-term growth[3] - The company plans to focus on investments in digital, software, cybersecurity, and artificial intelligence to enhance future growth opportunities[19] Operational Challenges - The company maintained operating margins above 40% despite unprecedented customer inventory headwinds[3] - Orders increased steadily in Q4, particularly in the Automotive end market, indicating a potential recovery[3] Tax and Expenses - The effective tax rate for the three months ended October 28, 2023, was 12.8%[30] - Operating expenses as a percentage of revenue for the three months ended October 28, 2023, increased to 37.3% from 34.7% in the previous year[30] - Acquisition-related expenses for the twelve months ended October 28, 2023, totaled $1,047,309[30]

Fourth quarter revenue of more than $2.4 billion, above the midpoint of guidance with sequential growth across all end markets Fiscal 2024 revenue of more than $9.4 billion Fiscal 2024 operating cash flow of $3.9 billion and free cash flow of $3.1 billion Returned more than $2.4 billion to shareholders in fiscal 2024, including $0.6 billion of share repurchases and $1.8 billion of dividendsWILMINGTON, Mass., Nov. 26, 2024 /PRNewswire/ -- Analog Devices, Inc. (Nasdaq: ADI), a global semiconductor leader, to ...

Wall Street analysts forecast that Analog Devices (ADI) will report quarterly earnings of $1.63 per share in its upcoming release, pointing to a year-over-year decline of 18.9%. It is anticipated that revenues will amount to $2.41 billion, exhibiting a decline of 11.4% compared to the year-ago quarter.The current level reflects no revision in the consensus EPS estimate for the quarter over the past 30 days. This demonstrates how the analysts covering the stock have collectively reappraised their initial pro ...

Analog Devices (ADI) is scheduled to report fourth-quarter fiscal 2024 results on Nov. 26.Analog Devices expects revenues of $2.4 billion (+/- $100 million). The Zacks Consensus Estimate is also pegged at $2.40 billion, indicating a decline of 11.6% from the year-ago quarter’s figure.ADI anticipates adjusted earnings per share of $1.63 (+/- $0.10). The consensus mark for earnings is pinned at $1.63 per share, indicating an 18.9% fall from the prior-year quarter’s figure. The estimate has remained unchanged ...

In the latest trading session, Analog Devices (ADI) closed at $209.65, marking a +1.6% move from the previous day. The stock's change was more than the S&P 500's daily gain of 0.39%. Meanwhile, the Dow lost 0.13%, and the Nasdaq, a tech-heavy index, added 0.6%.Prior to today's trading, shares of the semiconductor maker had lost 9.63% over the past month. This has lagged the Computer and Technology sector's gain of 0.59% and the S&P 500's gain of 1.06% in that time.The investment community will be closely mo ...