Analog Devices Reports Fourth Quarter and Fiscal 2024 Financial Results
Analog Devices (ADI) reported Q4 FY2024 revenue of $2.4 billion and full-year revenue of $9.4 billion, marking a 23% year-over-year decline. Despite customer inventory challenges, the company maintained operating margins above 40%. Q4 adjusted EPS was $1.67, down 17% year-over-year. The company generated $3.9 billion in operating cash flow and returned over $2.4 billion to shareholders through dividends and share repurchases in FY2024. For Q1 FY2025, ADI forecasts revenue of $2.35 billion ±$100 million, with adjusted EPS expected at $1.53 ±$0.10. Management noted improved Q4 bookings, particularly in Automotive, expressing cautious optimism for FY2025 growth.
Analog Devices (ADI) ha riportato un fatturato del Q4 FY2024 di 2,4 miliardi di dollari e un fatturato annuo totale di 9,4 miliardi di dollari, segnando un calo del 23% rispetto all'anno precedente. Nonostante le sfide legate alle scorte dei clienti, l'azienda ha mantenuto margini operativi superiori al 40%. L'EPS rettificato del Q4 è stato di 1,67 dollari, con una diminuzione del 17% rispetto all'anno precedente. L'azienda ha generato 3,9 miliardi di dollari di flusso di cassa operativo e ha restituito oltre 2,4 miliardi di dollari agli azionisti tramite dividendi e riacquisti di azioni nel FY2024. Per il Q1 FY2025, ADI prevede un fatturato di 2,35 miliardi di dollari ± 100 milioni, con un EPS rettificato atteso di 1,53 dollari ± 0,10. La direzione ha notato un miglioramento delle prenotazioni nel Q4, in particolare nel settore automobilistico, esprimendo un cauto ottimismo per la crescita nel FY2025.
Analog Devices (ADI) reportó ingresos de 2.4 mil millones de dólares en el Q4 del FY2024 y un ingreso total anual de 9.4 mil millones de dólares, marcando una disminución del 23% en comparación con el año anterior. A pesar de los desafíos en el inventario de los clientes, la compañía mantuvo márgenes operativos superiores al 40%. El EPS ajustado para el Q4 fue de 1.67 dólares, lo que representa una caída del 17% con respecto al año anterior. La compañía generó 3.9 mil millones de dólares en flujo de caja operativo y devolvió más de 2.4 mil millones de dólares a los accionistas a través de dividendos y recompra de acciones en el FY2024. Para el Q1 del FY2025, ADI pronostica ingresos de 2.35 mil millones de dólares ± 100 millones, y se espera que el EPS ajustado sea de 1.53 dólares ± 0.10. La dirección señaló mejoras en las reservas del Q4, especialmente en el sector automotriz, expresando un cauteloso optimismo para el crecimiento del FY2025.
아날로그 디바이스(ADI)는 FY2024 4분기 매출이 24억 달러, 연간 총 매출이 94억 달러에 달했다고 보고하며, 이는 전년 대비 23% 감소한 수치입니다. 고객 재고 문제에도 불구하고, 회사는 40% 이상의 운영 마진을 유지했습니다. 4분기 조정 EPS는 1.67달러로, 전년 대비 17% 감소했습니다. 회사는 39억 달러의 운영 현금 흐름을 창출하였고, FY2024 동안 배당금 및 자사주 매입을 통해 주주에게 24억 달러 이상을 환원했습니다. FY2025 1분기 동안 ADI는 매출을 23.5억 달러 ± 1억 달러를 예상하며, 조정 EPS는 1.53달러 ± 0.10로 예상하고 있습니다. 경영진은 특히 자동차 부문에서 4분기 예약 증가를 언급하며, FY2025 성장에 대한 조심스러운 낙관론을 표현했습니다.
Analog Devices (ADI) a rapporté un chiffre d'affaires de 2,4 milliards de dollars pour le Q4 FY2024 et un chiffre d'affaires annuel total de 9,4 milliards de dollars, marquant une baisse de 23% par rapport à l'année précédente. Malgré les défis liés aux stocks des clients, l'entreprise a maintenu des marges opérationnelles supérieures à 40%. Le BPA ajusté pour le Q4 était de 1,67 dollar, en baisse de 17% par rapport à l'année précédente. L'entreprise a généré 3,9 milliards de dollars de flux de trésorerie opérationnel et a restitué plus de 2,4 milliards de dollars aux actionnaires par le biais de dividendes et de rachats d'actions au FY2024. Pour le Q1 FY2025, ADI prévoit un chiffre d'affaires de 2,35 milliards de dollars ± 100 millions, avec un BPA ajusté attendu à 1,53 dollar ± 0,10. La direction a noté une amélioration des réservations au Q4, en particulier dans l'automobile, exprimant un optimisme prudent pour la croissance du FY2025.
Analog Devices (ADI) berichtete im Q4 FY2024 einen Umsatz von 2,4 Milliarden Dollar und einen Jahresumsatz von 9,4 Milliarden Dollar und verzeichnete damit einen Rückgang von 23% im Vergleich zum Vorjahr. Trotz Herausforderungen bei den Kundenbeständen hielt das Unternehmen die operativen Margen über 40%. Der bereinigte EPS für das Q4 betrug 1,67 Dollar, was einem Rückgang von 17% im Vergleich zum Vorjahr entspricht. Das Unternehmen generierte 3,9 Milliarden Dollar an operativem Cashflow und gab im FY2024 über 2,4 Milliarden Dollar an die Aktionäre durch Dividenden und Aktienrückkäufe zurück. Für das Q1 FY2025 prognostiziert ADI einen Umsatz von 2,35 Milliarden Dollar ± 100 Millionen, wobei der bereinigte EPS bei 1,53 Dollar ± 0,10 erwartet wird. Die Geschäftsleitung erwähnte verbesserte Buchungen im Q4, insbesondere im Automobilbereich, und äußerte vorsichtigen Optimismus für das Wachstum im FY2025.
- Maintained strong operating margins above 40% despite revenue decline
- Generated $3.9 billion operating cash flow in FY2024
- Returned $2.4 billion to shareholders through dividends and buybacks
- Q4 bookings showed improvement, especially in Automotive segment
- FY2024 revenue declined 23% year-over-year to $9.4 billion
- Q4 adjusted EPS decreased 17% year-over-year to $1.67
- Q4 adjusted operating margin fell 360 basis points to 41.1%
- Q1 FY2025 revenue guidance suggests continued weakness at $2.35 billion
Insights
The Q4 and FY2024 results reveal significant headwinds for ADI, with annual revenue declining
- Strong cash generation with
$3.9 billion operating cash flow - Robust shareholder returns totaling
$2.4 billion - Q4 revenue of
$2.4 billion exceeded guidance midpoint
The Q1 FY2025 guidance of
This earnings report reflects the broader semiconductor industry inventory correction cycle. The
- Fourth quarter revenue of more than
$2.4 billion - Fiscal 2024 revenue of more than
$9.4 billion - Fiscal 2024 operating cash flow of
$3.9 billion $3.1 billion - Returned more than
$2.4 billion $0.6 billion $1.8 billion
"ADI's revenue, profitability, and earnings per share all finished above our guided midpoint, underscoring continued business momentum and solid execution," said Vincent Roche, CEO and Chair. "While unprecedented customer inventory headwinds drove a historic revenue decline during fiscal 2024, we maintained operating margins north of
"After a brief decline in overall bookings during our third quarter, orders picked up steadily throughout the fourth quarter, particularly in the Automotive end market. While macro uncertainty continues to limit the pace of our recovery, we remain cautiously optimistic for a strong growth year in fiscal 2025," said Richard Puccio, CFO.
Performance for the Fourth Quarter and Fiscal Year 2024
Results Summary(1) | |||||||||||
(in millions, except per-share amounts and percentages) | |||||||||||
Three Months Ended | Twelve Months Ended | ||||||||||
Nov. 2, | Oct. 28, | Change | Nov. 2, | Oct. 28, | Change | ||||||
Revenue | $ 2,443 | $ 2,716 | (10) % | $ 9,427 | $ 12,306 | (23) % | |||||
Gross margin | $ 1,416 | $ 1,647 | (14) % | $ 5,381 | $ 7,877 | (32) % | |||||
Gross margin percentage | 58.0 % | 60.6 % | (260 bps) | 57.1 % | 64.0 % | (690 bps) | |||||
Operating income | $ 569 | $ 634 | (10) % | $ 2,033 | $ 3,823 | (47) % | |||||
Operating margin | 23.3 % | 23.4 % | (10 bps) | 21.6 % | 31.1 % | (950 bps) | |||||
Diluted earnings per share | $ 0.96 | $ 1.00 | (4) % | $ 3.28 | $ 6.55 | (50) % | |||||
Adjusted Results(2) | |||||||||||
Adjusted gross margin | $ 1,660 | $ 1,907 | (13) % | $ 6,404 | $ 8,925 | (28) % | |||||
Adjusted gross margin percentage | 67.9 % | 70.2 % | (230 bps) | 67.9 % | 72.5 % | (460 bps) | |||||
Adjusted operating income | $ 1,005 | $ 1,215 | (17) % | $ 3,853 | $ 6,014 | (36) % | |||||
Adjusted operating margin | 41.1 % | 44.7 % | (360 bps) | 40.9 % | 48.9 % | (800 bps) | |||||
Adjusted diluted earnings per share | $ 1.67 | $ 2.01 | (17) % | $ 6.38 | $ 10.09 | (37) % | |||||
Three Months Ended | Trailing Twelve | ||||||||||
Cash Generation | Nov. 2, 2024 | Nov. 2, 2024 | |||||||||
Net cash provided by operating activities | $ 1,051 | $ 3,853 | |||||||||
% of revenue | 43 % | 41 % | |||||||||
Capital expenditures | $ (165) | $ (730) | |||||||||
Free cash flow(2) | $ 885 | $ 3,122 | |||||||||
% of revenue | 36 % | 33 % | |||||||||
Three Months Ended | Trailing Twelve | ||||||||||
Cash Return | Nov. 2, 2024 | Nov. 2, 2024 | |||||||||
Dividend paid | $ (457) | $ (1,795) | |||||||||
Stock repurchases | (95) | (616) | |||||||||
Total cash returned | $ (552) | $ (2,411) | |||||||||
(1) The sum and/or computation of the individual amounts may not equal the total due to rounding. | |||||||||||
(2) Reconciliations of non-GAAP financial measures to their most directly comparable GAAP financial measures are provided in the financial tables included in this press release. See also the "Non-GAAP Financial Information" section for additional information. | |||||||||||
Outlook for the First Quarter of Fiscal Year 2025
For the first quarter of fiscal 2025, we are forecasting revenue of
Our first quarter fiscal 2025 outlook is based on current expectations and actual results may differ materially as a result of, among other things, the important factors discussed at the end of this release. These statements supersede all prior statements regarding our business outlook set forth in prior ADI news releases, and ADI disclaims any obligation to update these forward-looking statements.
The adjusted results and adjusted anticipated results above are financial measures presented on a non-GAAP basis. Reconciliations of these non-GAAP financial measures to their most directly comparable GAAP financial measures are provided in the financial tables included in this release. See also the "Non-GAAP Financial Information" section for additional information.
Dividend Payment
The ADI Board of Directors has declared a quarterly cash dividend of
Conference Call Scheduled for Today, Tuesday, November 26, 2024 at 10:00 am ET
ADI will host a conference call to discuss our fourth quarter and fiscal 2024 results and short-term outlook today, beginning at 10:00 am ET. Investors may join via webcast, accessible at investor.analog.com.
Non-GAAP Financial Information
This release includes non-GAAP financial measures that are not in accordance with, nor an alternative to,
Management uses non-GAAP measures internally to evaluate the Company's operating performance from continuing operations against past periods and to budget and allocate resources in future periods. These non-GAAP measures also assist management in evaluating the Company's core business and trends across different reporting periods on a consistent basis. Management also uses these non-GAAP measures as primary performance measurements when communicating with analysts and investors regarding the Company's earnings results and outlook and believes that the presentation of these non-GAAP measures is useful to investors because it provides investors with the operating results that management uses to manage the Company and enables investors and analysts to evaluate the Company's core business. Management also believes that free cash flow, a non-GAAP liquidity measure, is useful both internally and to investors because it provides information about the amount of cash generated after capital expenditures that is then available to repay debt obligations, make investments and fund acquisitions, and for certain other activities.
The non-GAAP financial measures referenced by ADI in this release include: adjusted gross margin, adjusted gross margin percentage, adjusted operating expenses, adjusted operating expenses percentage, adjusted operating income, adjusted operating margin, adjusted nonoperating expense (income), adjusted income before income taxes, adjusted provision for income taxes, adjusted tax rate, adjusted diluted earnings per share (EPS), free cash flow, and free cash flow revenue percentage.
Adjusted gross margin is defined as gross margin, determined in accordance with GAAP, excluding: certain acquisition related expenses1, which are described further below. Adjusted gross margin percentage represents adjusted gross margin divided by revenue.
Adjusted operating expenses is defined as operating expenses, determined in accordance with GAAP, excluding: certain acquisition related expenses1, acquisition related transaction costs2, and special charges, net3, which are described further below. Adjusted operating expenses percentage represents adjusted operating expenses divided by revenue.
Adjusted operating income is defined as operating income, determined in accordance with GAAP, excluding: acquisition related expenses1, acquisition related transaction costs2, and special charges, net3, which are described further below. Adjusted operating margin represents adjusted operating income divided by revenue.
Adjusted nonoperating expense (income) is defined as nonoperating expense (income), determined in accordance with GAAP, excluding: certain acquisition related expenses1, which is described further below.
Adjusted income before income taxes is defined as income before income taxes, determined in accordance with GAAP, excluding: acquisition related expenses1, acquisition related transaction costs2, and special charges, net3, which are described further below.
Adjusted provision for income taxes is defined as provision for income taxes, determined in accordance with GAAP, excluding tax related items4, which are described further below. Adjusted tax rate represents adjusted provision for income taxes divided by adjusted income before income taxes.
Adjusted diluted EPS is defined as diluted EPS, determined in accordance with GAAP, excluding: acquisition related expenses1, acquisition related transaction costs2, special charges, net3, and tax related items4, which are described further below.
Free cash flow is defined as net cash provided by operating activities, determined in accordance with GAAP, less additions to property, plant and equipment, net. Free cash flow revenue percentage represents free cash flow divided by revenue.
1Acquisition Related Expenses: Expenses incurred as a result of current and prior period acquisitions and primarily include expenses associated with the fair value adjustments to debt, inventory, property, plant and equipment and amortization of acquisition related intangibles, which include acquired intangibles such as purchased technology and customer relationships. Expenses also include fair value adjustments associated with the replacement of share-based awards related to the Maxim Integrated Products, Inc. (Maxim) acquisition. We excluded these costs from our non-GAAP measures because they relate to specific transactions and are not reflective of our ongoing financial performance.
2Acquisition Related Transaction Costs: Costs directly related to the Maxim acquisition, including legal, accounting and other professional fees as well as integration-related costs. We excluded these costs from our non-GAAP measures because they relate to a specific transaction and are not reflective of our ongoing financial performance.
3Special Charges, net: Expenses, net, incurred as part of the integration of Maxim, in connection with facility closures, consolidation of manufacturing facilities, severance, other accelerated stock-based compensation expense and other cost reduction efforts or reorganizational initiatives. We excluded these expenses from our non-GAAP measures because apart from ongoing expense savings as a result of such items, these expenses have no direct correlation to the operation of our business in the future.
4Tax Related Items: Income tax effect of the non-GAAP items discussed above, an income tax benefit from a discrete tax item related to a federal corporate income tax relief claim and certain other income tax benefits associated with prior periods. We excluded the income tax effect of these tax related items from our non-GAAP measures because they are not associated with the tax expense on our current operating results.
About Analog Devices, Inc.
Analog Devices, Inc. (NASDAQ: ADI) is a global semiconductor leader that bridges the physical and digital worlds to enable breakthroughs at the Intelligent Edge. ADI combines analog, digital, and software technologies into solutions that help drive advancements in digitized factories, mobility, and digital healthcare, combat climate change, and reliably connect humans and the world. With revenue of more than
Forward Looking Statements
This press release contains forward-looking statements, which address a variety of subjects including, for example, our statements regarding our 2025 financial performance; expected revenue, operating margin, nonoperating expenses, tax rate, earnings per share, free cash flow returns, and other financial results; customer inventory rationalization; economic uncertainty, geopolitical conditions, demand, and other market conditions, business cycles, and supply chains; capital expenditures and investments, including those related to digital, software, cybersecurity, and artificial intelligence; expected market and technology trends; market size, market share gains, market position, and growth opportunities; our opportunity pipeline; expected product solutions, offerings, technologies, capabilities, and applications, including those that may incorporate, or be based upon, software or artificial intelligence technology; the value and importance of, and other benefits related to, our product solutions, offerings, and technologies to our customers, including those that may incorporate, or be based upon, software or artificial intelligence technology; our manufacturing capacity and investments to enhance resiliency; expected tax credits; future dividends and share repurchases; expected revenue synergies; and other future events. Statements that are not historical facts, including statements about our beliefs, plans and expectations, are forward-looking statements. Such statements are based on our current expectations and are subject to a number of factors and uncertainties, which could cause actual results to differ materially from those described in the forward-looking statements. The following important factors and uncertainties, among others, could cause actual results to differ materially from those described in these forward-looking statements: economic, political, legal and regulatory uncertainty or conflicts; changes in demand for semiconductor products; manufacturing delays, product and raw materials availability and supply chain disruptions; products that may be diverted from our authorized distribution channels; changes in export classifications, import and export regulations or duties and tariffs; our development of technologies and research and development investments; our future liquidity, capital needs and capital expenditures; our ability to compete successfully in the markets in which we operate; our ability to recruit and retain key personnel; risks related to acquisitions or other strategic transactions; security breaches or other cyber incidents; risks related to the use of artificial intelligence in our business operations, products, and services; adverse results in litigation matters; reputational damage; changes in our estimates of our expected tax rates based on current tax law; risks related to our indebtedness; the discretion of our Board of Directors to declare dividends and our ability to pay dividends in the future; factors impacting our ability to repurchase shares; and uncertainty as to the long-term value of our common stock. For additional information about factors that could cause actual results to differ materially from those described in the forward-looking statements, please refer to our filings with the Securities and Exchange Commission, including the risk factors contained in our most recent Annual Report on Form 10-K. Forward-looking statements represent management's current expectations and are inherently uncertain. Except as required by law, we do not undertake any obligation to update forward-looking statements made by us to reflect subsequent events or circumstances.
Analog Devices and the Analog Devices logo are registered trademarks or trademarks of Analog Devices, Inc. All other trademarks mentioned in this document are the property of their respective owners.
ANALOG DEVICES, INC. CONSOLIDATED STATEMENTS OF INCOME (Unaudited) (In thousands, except per share amounts) | |||||||
Three Months Ended | Twelve Months Ended | ||||||
Nov. 2, 2024 | Oct. 28, 2023 | Nov. 2, 2024 | Oct. 28, 2023 | ||||
Revenue | $ 2,443,205 | $ 2,716,484 | $ 9,427,157 | $ 12,305,539 | |||
Cost of sales | 1,027,077 | 1,069,768 | 4,045,814 | 4,428,321 | |||
Gross margin | 1,416,128 | 1,646,716 | 5,381,343 | 7,877,218 | |||
Operating expenses: | |||||||
Research and development | 378,903 | 406,594 | 1,487,863 | 1,660,194 | |||
Selling, marketing, general and administrative | 277,220 | 288,936 | 1,068,640 | 1,273,584 | |||
Amortization of intangibles | 187,754 | 202,736 | 754,784 | 959,618 | |||
Special charges, net | 2,859 | 114,035 | 37,258 | 160,710 | |||
Total operating expenses | 846,736 | 1,012,301 | 3,348,545 | 4,054,106 | |||
Operating income | 569,392 | 634,415 | 2,032,798 | 3,823,112 | |||
Nonoperating expense (income): | |||||||
Interest expense | 82,804 | 71,590 | 322,227 | 264,641 | |||
Interest income | (27,947) | (9,089) | (78,817) | (41,287) | |||
Other, net | (1,793) | 128 | 12,048 | (8,245) | |||
Total nonoperating expense (income) | 53,064 | 62,629 | 255,458 | 215,109 | |||
Income before income taxes | 516,328 | 571,786 | 1,777,340 | 3,608,003 | |||
Provision for income taxes | 38,256 | 73,356 | 142,067 | 293,424 | |||
Net income | $ 478,072 | $ 498,430 | $ 1,635,273 | $ 3,314,579 | |||
Shares used to compute earnings per share - basic | 496,432 | 497,073 | 496,166 | 502,232 | |||
Shares used to compute earnings per share - diluted | 498,722 | 500,424 | 498,697 | 505,959 | |||
Basic earnings per common share | $ 0.96 | $ 1.00 | $ 3.30 | $ 6.60 | |||
Diluted earnings per common share | $ 0.96 | $ 1.00 | $ 3.28 | $ 6.55 | |||
ANALOG DEVICES, INC. CONSOLIDATED BALANCE SHEETS (Unaudited)
| |||
(thousands, except per share amounts) | Nov. 2, 2024 | Oct. 28, 2023 | |
ASSETS | |||
Current Assets | |||
Cash and cash equivalents | $ 1,991,342 | $ 958,061 | |
Short-term investments | 371,822 | — | |
Accounts receivable | 1,336,331 | 1,469,734 | |
Inventories | 1,447,687 | 1,642,214 | |
Prepaid expenses and other current assets | 337,472 | 314,013 | |
Total current assets | 5,484,654 | 4,384,022 | |
Other Assets | |||
Net property, plant and equipment | 3,415,550 | 3,219,157 | |
Goodwill | 26,909,775 | 26,913,134 | |
Intangible assets, net | 9,585,464 | 11,311,957 | |
Deferred tax assets | 2,083,752 | 2,223,272 | |
Other assets | 749,082 | 742,936 | |
Total non-current assets | 42,743,623 | 44,410,456 | |
TOTAL ASSETS | $ 48,228,277 | $ 48,794,478 | |
LIABILITIES AND SHAREHOLDERS' EQUITY | |||
Current Liabilities | |||
Accounts payable | $ 487,457 | $ 493,041 | |
Income taxes payable | 447,379 | 309,046 | |
Debt, current | 399,636 | 499,052 | |
Commercial paper notes | 547,738 | 547,224 | |
Accrued liabilities | 1,106,070 | 1,352,608 | |
Total current liabilities | 2,988,280 | 3,200,971 | |
Non-current Liabilities | |||
Long-term debt | 6,634,313 | 5,902,457 | |
Deferred income taxes | 2,624,392 | 3,127,852 | |
Income taxes payable | 260,486 | 417,076 | |
Other non-current liabilities | 544,489 | 581,000 | |
Total non-current liabilities | 10,063,680 | 10,028,385 | |
Shareholders' Equity | |||
Preferred stock, | — | — | |
Common stock, | 82,718 | 82,712 | |
Capital in excess of par value | 25,082,243 | 25,313,914 | |
Retained earnings | 10,196,612 | 10,356,798 | |
Accumulated other comprehensive loss | (185,256) | (188,302) | |
Total shareholders' equity | 35,176,317 | 35,565,122 | |
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $ 48,228,277 | $ 48,794,478 | |
ANALOG DEVICES, INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) (In thousands) | |||||||
Three Months Ended | Twelve Months Ended | ||||||
Nov. 2, 2024 | Oct. 28, 2023 | Nov. 2, 2024 | Oct. 28, 2023 | ||||
Cash flows from operating activities: | |||||||
Net income | $ 478,072 | $ 498,430 | $ 1,635,273 | $ 3,314,579 | |||
Adjustments to reconcile net income to net cash provided by operations: | |||||||
Depreciation | 97,241 | 82,919 | 362,771 | 334,704 | |||
Amortization of intangibles | 423,220 | 453,198 | 1,741,545 | 1,958,399 | |||
Stock-based compensation expense | 70,448 | 72,710 | 262,710 | 299,823 | |||
Deferred income taxes | (97,997) | (21,553) | (367,563) | (452,946) | |||
Other | (776) | (10,465) | 23,050 | 8,665 | |||
Changes in operating assets and liabilities | 80,609 | 112,055 | 194,743 | (645,590) | |||
Total adjustments | 572,745 | 688,864 | 2,217,256 | 1,503,055 | |||
Net cash provided by operating activities | 1,050,817 | 1,187,294 | 3,852,529 | 4,817,634 | |||
Percent of revenue | 43 % | 44 % | 41 % | 39 % | |||
Cash flows from investing activities: | |||||||
Purchases of short-term investments | — | — | (438,901) | — | |||
Maturities of short-term investments | 69,279 | — | 69,279 | — | |||
Additions to property, plant and equipment, net | (165,410) | (476,393) | (730,463) | (1,261,463) | |||
Other | (15,483) | (2,668) | (4,773) | (4,922) | |||
Net cash used for investing activities | (111,614) | (479,061) | (1,104,858) | (1,266,385) | |||
Cash flows from financing activities: | |||||||
Proceeds from debt | — | — | 1,087,856 | — | |||
Early termination of debt | — | — | — | (65,688) | |||
Debt repayments | (499,966) | — | (499,966) | — | |||
Proceeds from commercial paper notes | 2,474,948 | 2,640,615 | 10,184,439 | 5,287,124 | |||
Payments of commercial paper notes | (2,474,652) | (2,638,101) | (10,183,925) | (4,739,900) | |||
Dividend payments to shareholders | (456,756) | (427,974) | (1,795,459) | (1,679,106) | |||
Repurchase of common stock | (94,878) | (469,937) | (615,590) | (2,963,955) | |||
Proceeds from employee stock plans | 4,860 | 5,606 | 121,215 | 118,608 | |||
Other | (7,449) | (9,627) | (12,960) | (20,843) | |||
Net cash used for financing activities | (1,053,893) | (899,418) | (1,714,390) | (4,063,760) | |||
Net (decrease) increase in cash and cash equivalents | (114,690) | (191,185) | 1,033,281 | (512,511) | |||
Cash and cash equivalents at beginning of period | 2,106,032 | 1,149,246 | $ 958,061 | $ 1,470,572 | |||
Cash and cash equivalents at end of period | $ 1,991,342 | $ 958,061 | $ 1,991,342 | $ 958,061 | |||
ANALOG DEVICES, INC. REVENUE TRENDS BY END MARKET (Unaudited) (In thousands) | |||||||||
The categorization of revenue by end market is determined using a variety of data points including the technical characteristics of the product, the "sold to" customer information, the "ship to" customer information and the end customer product or application into which our product will be incorporated. As data systems for capturing and tracking this data and our methodology evolves and improves, the categorization of products by end market can vary over time. When this occurs, we reclassify revenue by end market for prior periods. Such reclassifications typically do not materially change the sizing of, or the underlying trends of results within, each end market. | |||||||||
Three Months Ended | |||||||||
Nov. 2, 2024 | Oct. 28, 2023 | ||||||||
Revenue | % of revenue* | Y/Y % | Revenue | % of revenue* | |||||
Industrial | $ 1,070,978 | 44 % | (21) % | $ 1,356,884 | 50 % | ||||
Automotive | 716,964 | 29 % | (2) % | 733,014 | 27 % | ||||
Communications | 275,573 | 11 % | (18) % | 336,238 | 12 % | ||||
Consumer | 379,690 | 16 % | 31 % | 290,348 | 11 % | ||||
Total revenue | $ 2,443,205 | 100 % | (10) % | $ 2,716,484 | 100 % | ||||
Twelve Months Ended | |||||||||
Nov. 2, 2024 | Oct. 28, 2023 | ||||||||
Revenue | % of revenue* | Y/Y % | Revenue | % of revenue* | |||||
Industrial | $ 4,314,280 | 46 % | (35) % | $ 6,611,794 | 54 % | ||||
Automotive | 2,827,439 | 30 % | (2) % | 2,876,140 | 23 % | ||||
Communications | 1,080,496 | 11 % | (33) % | 1,606,426 | 13 % | ||||
Consumer | 1,204,942 | 13 % | (1) % | 1,211,179 | 10 % | ||||
Total revenue | $ 9,427,157 | 100 % | (23) % | $ 12,305,539 | 100 % | ||||
*The sum of the individual percentages may not equal the total due to rounding. | |||||||||
ANALOG DEVICES, INC. RECONCILIATION OF GAAP TO NON-GAAP RESULTS (Unaudited) (In thousands, except per share amounts) | |||||||
Three Months Ended | Twelve Months Ended | ||||||
Nov. 2, 2024 | Oct. 28, 2023 | Nov. 2, 2024 | Oct. 28, 2023 | ||||
Gross margin | $ 1,416,128 | $ 1,646,716 | $ 5,381,343 | $ 7,877,218 | |||
Gross margin percentage | 58.0 % | 60.6 % | 57.1 % | 64.0 % | |||
Acquisition related expenses | 243,667 | 259,925 | 1,022,488 | 1,047,309 | |||
Adjusted gross margin | $ 1,659,795 | $ 1,906,641 | $ 6,403,831 | $ 8,924,527 | |||
Adjusted gross margin percentage | 67.9 % | 70.2 % | 67.9 % | 72.5 % | |||
Operating expenses | $ 846,736 | $ 1,012,301 | $ 3,348,545 | $ 4,054,106 | |||
Percent of revenue | 34.7 % | 37.3 % | 35.5 % | 32.9 % | |||
Acquisition related expenses | (188,821) | (206,151) | (760,325) | (976,223) | |||
Acquisition related transaction costs | — | — | — | (7,069) | |||
Special charges, net | (2,859) | (114,035) | (37,258) | (160,710) | |||
Adjusted operating expenses | $ 655,056 | $ 692,115 | $ 2,550,962 | $ 2,910,104 | |||
Adjusted operating expenses percentage | 26.8 % | 25.5 % | 27.1 % | 23.6 % | |||
Operating income | $ 569,392 | $ 634,415 | $ 2,032,798 | $ 3,823,112 | |||
Operating margin | 23.3 % | 23.4 % | 21.6 % | 31.1 % | |||
Acquisition related expenses | 432,488 | 466,076 | 1,782,813 | 2,023,532 | |||
Acquisition related transaction costs | — | — | — | 7,069 | |||
Special charges, net | 2,859 | 114,035 | 37,258 | 160,710 | |||
Adjusted operating income | $ 1,004,739 | $ 1,214,526 | $ 3,852,869 | $ 6,014,423 | |||
Adjusted operating margin | 41.1 % | 44.7 % | 40.9 % | 48.9 % | |||
Nonoperating expense (income) | $ 53,064 | $ 62,629 | $ 255,458 | $ 215,109 | |||
Acquisition related expenses | 2,150 | 2,150 | 8,600 | 13,743 | |||
Adjusted nonoperating expense (income) | $ 55,214 | $ 64,779 | 264,058 | $ 228,852 | |||
Income before income taxes | $ 516,328 | $ 571,786 | $ 1,777,340 | $ 3,608,003 | |||
Acquisition related expenses | 430,338 | 463,926 | 1,774,213 | 2,009,789 | |||
Acquisition related transaction costs | — | — | — | 7,069 | |||
Special charges, net | 2,859 | 114,035 | 37,258 | 160,710 | |||
Adjusted income before income taxes | $ 949,525 | $ 1,149,747 | $ 3,588,811 | $ 5,785,571 | |||
Provision for income taxes | $ 38,256 | $ 73,356 | $ 142,067 | $ 293,424 | |||
Effective tax rate | 7.4 % | 12.8 % | 8.0 % | 8.1 % | |||
Tax related items | 76,702 | 70,503 | 265,697 | 388,093 | |||
Adjusted provision for income taxes | $ 114,958 | $ 143,859 | $ 407,764 | $ 681,517 | |||
Adjusted tax rate | 12.1 % | 12.5 % | 11.4 % | 11.8 % | |||
Diluted EPS | $ 0.96 | $ 1.00 | $ 3.28 | $ 6.55 | |||
Acquisition related expenses | 0.86 | 0.93 | 3.56 | 3.97 | |||
Acquisition related transaction costs | — | — | — | 0.01 | |||
Special charges, net | 0.01 | 0.23 | 0.07 | 0.32 | |||
Tax related items | (0.15) | (0.14) | (0.53) | (0.77) | |||
Adjusted diluted EPS* | $ 1.67 | $ 2.01 | $ 6.38 | $ 10.09 | |||
* The sum of the individual per share amounts may not equal the total due to rounding. | |||||||
ANALOG DEVICES, INC. RECONCILIATION OF NET CASH PROVIDED BY OPERATING ACTIVITIES TO FREE CASH FLOW (Unaudited) (In thousands) | |||||||||
Trailing | Three Months Ended | ||||||||
Nov. 2, 2024 | Nov. 2, 2024 | Aug. 3, 2024 | May. 4, 2024 | Feb. 3, 2024 | |||||
Revenue | $ 9,427,157 | $ 2,159,039 | |||||||
Net cash provided by operating activities | $ 3,852,529 | $ 855,027 | $ 807,853 | ||||||
% of Revenue | 41 % | 43 % | 37 % | 37 % | 45 % | ||||
Capital expenditures | $ (730,463) | $ (165,410) | $ (153,886) | $ (188,189) | $ (222,978) | ||||
Free cash flow | $ 3,122,066 | $ 885,407 | $ 701,141 | $ 619,664 | $ 915,854 | ||||
% of Revenue | 33 % | 36 % | 30 % | 29 % | 36 % | ||||
ANALOG DEVICES, INC. RECONCILIATION OF PROJECTED GAAP TO NON-GAAP RESULTS (Unaudited) | |||
Three Months Ending February 1, 2025 | |||
Reported | Adjusted | ||
Revenue | |||
(+/- | (+/- | ||
Operating margin | 22.0 % | 40.0 %(1) | |
(+/-130 bps) | (+/-100 bps) | ||
Nonoperating expenses | ~ | ~ | |
Tax rate | |||
Earnings per share | |||
(+/- | (+/- | ||
(1) Includes | |||
(2) Includes | |||
(3) Includes | |||
For more information, please contact:
Investor Contact:
Analog Devices, Inc.
Mr. Michael Lucarelli
Vice President, Investor Relations and FP&A
781-461-3282
investor.relations@analog.com
Media Contacts:
Analog Devices, Inc.
Ms. Ferda Millan
Global PR & External Communications
Ferda.Millan@analog.com
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SOURCE Analog Devices, Inc.
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