Analog Devices Beats Q3; Shares Drop As Macros Continue To Impact Bookings

Analog Devices Beats Q3; Shares Drop As Macros Continue To Impact Bookings
  • Analog Devices, Inc ADI reported third-quarter FY22 revenue growth of 77% year-on-year to $3.11 billion, beating the consensus of $3.05 billion.
  • Adjusted EPS of $2.52 beat the consensus of $2.43.
  • End Markets: Analog Devices' Industrial revenue grew 54.5% Y/Y to $1.56 billion.
  • Automotive revenue increased 127.1% Y/Y to $659.1 million. Communications revenue rose 69% to $490.7 million, and Consumer revenue grew 135.6% to $404.99 million.
  • Margins: The adjusted gross margin expanded 250 bps to 74.1%. The adjusted operating margin grew 650 bps to 50.1%.
  • Analog Devices held $1.52 billion in cash and equivalents and generated $1.25 billion in operating cash flow.
  • Dividend: The board declared a quarterly cash dividend of $0.76 per share.
  • CEO and Chair Vincent Roche said, "While economic uncertainty is beginning to impact bookings, demand continues to outpace supply, resulting in higher backlog, paving the way for a strong finish to a banner year."
  • Outlook: Analog Devices sees Q4 revenue of $3.05 billion - $3.25 billion, versus the consensus of $3.11 billion.
  • The company sees adjusted EPS of $2.47 - $2.67, against the consensus of $2.50.
  • Price Action: ADI shares traded lower by 2.19% at $175.12 in the premarket session on the last check Wednesday.

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