Analog Devices leads the first quarter supported by momentum in end markets and geographies; Increases the dividend by 10%
- Analog Devices Inc ADI announced first-quarter FY22 revenue growth of 72% year-over-year to $2.68 billion, beating consensus of $2.60 billion. Adjusted EPS of $1.94 beat the consensus of $1.77.
- End markets: Analog Devices’ Industry revenue increased 57% year-on-year to $1.34 billion.
- Automotive revenue rose 124% year-on-year to $552.7 million. Communications revenue increased 46% to $412.4 million, and consumer revenue increased 117% to $378.1 million.
- Margins: Adjusted gross margin increased by 190 basis points to 71.9%. Adjusted operating margin increased by 510 basis points to 45.8%.
- Analog Devices held $1.8 billion in cash and cash equivalents and generated $856.4 million in operating cash flow.
- Dividend: The board increased the quarterly cash dividend by 10% to $0.76 per share, payable March 8, 2022 to all shareholders of record February 25, 2022.
- Outlook: Analog Devices forecasts revenue of $2.7 billion to $2.9 billion in the second quarter of FY22, above the consensus of $2.64 billion.
- The company sees adjusted EPS of $1.97 to $2.17, above the consensus of $1.84.
- “With higher bookings and backlog as well as additional capacity investments, I am confident that we will maintain this level of performance throughout 2022,” CEO Vincent Roche said.
- Price action: Shares of ADI traded up 1.83% at $165 in the last check premarket session on Wednesday.
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