ADI Earnings Prediction
The chart below shows how ADI performed 10 days before and after its earnings report, based on data from the past quarters. Typically, ADI sees a -5.06% change in stock price 10 days leading up to the earnings, and a -2.07% change 10 days following the report. On the earnings day itself, the stock moves by +2.35%. This data can give you a slight idea of what to expect for the next quarter's release.
ADI Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
2.42B
-3.56%
-0.82%
Gross Margin
51.29%
0.41%
2.01%
Operating Margin
22.91%
-4.38%
-2.18%
Net Margin
16.15%
-12.32%
-16.75%
EPS
0.78
-16.13%
-18.75%
No Data Available
ADI Earnings Analysis
Analog Devices Inc Corporation (ADI.O) Earnings Conference Call
Positive
Earnings Per Share Beat: Analog Devices, Inc. reported an EPS of $1.63, exceeding expectations of $1.54, indicating strong financial performance.
Q1 Revenue Performance: First quarter revenue of $2.42 billion was above the midpoint of the company's outlook, reflecting a 4% year-over-year growth when adjusted for the extra week in the previous fiscal year.
Consistent Dividend Increases: The company has increased its dividend for the twenty-first consecutive year, demonstrating a commitment to returning value to shareholders.
Industrial Segment Performance: The industrial segment represented 44% of revenue and showed a 1% sequential increase, indicating stable demand in this sector.
Diverse Revenue Growth: The automatic test and aerospace and defense businesses experienced year-over-year growth, showcasing the company's diverse revenue streams.
Gross Margin Improvement: Gross margin improved to 68.8%, up 90 basis points sequentially, driven by a favorable product mix, highlighting operational efficiency.
Strong Operating Margin: Operating margin was reported at 40.5%, reflecting strong profitability despite increased operating expenses.
Shareholder Return Strategy: The company returned over $2.4 billion to shareholders through dividends and share repurchases over the trailing twelve months, reinforcing its shareholder return strategy.
Q2 Revenue Guidance: The guidance for the second quarter anticipates revenue of $2.5 billion, indicating continued growth expectations for the upcoming period.
Negative
Revenue Decline Analysis: First quarter revenue of $2.42 billion showed a 4% decline year over year, indicating challenges in maintaining growth compared to the previous year.
Consumer Revenue Decline: Consumer revenue decreased by 15% sequentially, reflecting seasonal challenges and a potential weakness in demand in that segment.
Wireless Revenue Challenges: Despite an overall positive outlook, the wireless revenue continues to face demand challenges, suggesting ongoing issues in that market.
Sector Performance Outlook: The company noted that while industrial and automotive sectors are improving, communications and consumer segments are expected to decline in the next quarter, indicating potential volatility in revenue streams.
Inventory Management Concerns: The increase in inventory levels by $27 million sequentially raises concerns about overstocking and potential inefficiencies in inventory management.
ADI FAQs
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ADI Earning Call Sentiment
Analog Devices, Inc. (NASDAQ:ADI) Q1 2025 Earnings Call Transcript
ADI.O
-1.36%Positive
The earnings call shows positive elements such as an 8% dividend increase, $10 billion share repurchase, and strong guidance with expected EPS and revenue growth. Although revenue declined YoY, it increased when adjusted for fiscal timing. Financial health is strong with high cash flow and decreased leverage. The Q&A highlights strong performance in China and automotive markets, despite macroeconomic challenges. Overall, the positive shareholder return plan and optimistic guidance outweigh the risks, suggesting a positive stock reaction.
