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May 02, 2020

Analog Devices Q2 2020 Earnings Report

Reported second quarter results within original guidance range and generated solid free cash flow.

Key Takeaways

Analog Devices reported Q2 fiscal year 2020 results with revenue of $1.32 billion. The company's diversification across customers, applications, and markets mitigated weaker global business activity, enabling them to deliver results within their original guidance range and generate solid free cash flow.

Revenue of $1.32 billion increased sequentially.

B2B revenue increased 3% sequentially led by the communication and industrial sectors.

Operating cash flow of $2.0 billion and free cash flow of $1.8 billion on a trailing twelve month basis.

Returned over $340 million to shareholders in the second quarter through dividends and share repurchases

Total Revenue
$1.32B
Previous year: $1.53B
-13.8%
EPS
$1.08
Previous year: $1.36
-20.6%
Gross Margin
64.3%
Previous year: 67.7%
-5.0%
Operating Margin
26.1%
Previous year: 30.8%
-15.3%
Gross Profit
$847M
Previous year: $1.03B
-18.1%
Cash and Equivalents
$785M
Previous year: $714M
+10.0%
Free Cash Flow
$369M
Previous year: $596M
-38.1%
Total Assets
$21.4B
Previous year: $21.8B
-2.0%

Analog Devices

Analog Devices

Analog Devices Revenue by Segment

Forward Guidance

For the third quarter of fiscal 2020, the company is forecasting revenue of $1.32 billion, +/- $70 million. They expect reported operating margins of approximately 26.4%, +/-200 bps, and adjusted operating margins of approximately 38.3%, +/-150 bps. They are planning for reported EPS to be $0.72, +/-$0.11, and adjusted EPS to be $1.08, +/-$0.11.

Revenue & Expenses

Visualization of income flow from segment revenue to net income