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Apr 29, 2023

Analog Devices Q2 2023 Earnings Report

Reported record revenue, driven by strong performance in Industrial and Automotive sectors, but anticipated moderation in the second half due to economic uncertainty and normalizing supply chains.

Key Takeaways

Analog Devices reported record revenue for the second quarter of fiscal year 2023, with a 10% year-over-year increase. The growth was primarily driven by record results in the Industrial and Automotive sectors. The company returned $1.5 billion to shareholders through share repurchases and dividends.

Revenue increased 10% year-over-year, driven by record results in Industrial and Automotive.

Operating cash flow was $4.9 billion and free cash flow was $4.0 billion on a trailing twelve-month basis.

$1.5 billion was returned to shareholders through share repurchases and dividends during the second quarter.

Company expects revenue to moderate in the second half due to economic uncertainty and normalizing supply chains.

Total Revenue
$3.26B
Previous year: $2.97B
+9.8%
EPS
$2.83
Previous year: $2.4
+17.9%
Gross Margin
65.7%
Previous year: 65.4%
+0.5%
Operating Margin
34.6%
Previous year: 30.9%
+12.0%
Gross Profit
$2.14B
Previous year: $1.94B
+10.3%
Cash and Equivalents
$1.18B
Previous year: $1.74B
-32.2%
Free Cash Flow
$797M
Previous year: $1.1B
-27.7%
Total Assets
$49.5B
Previous year: $50.8B
-2.5%

Analog Devices

Analog Devices

Analog Devices Revenue by Segment

Forward Guidance

For the third quarter of fiscal year 2023, the company is forecasting revenue of $3.10 billion, +/- $100 million. They expect reported EPS to be $1.64, +/-$0.12, and adjusted EPS to be $2.52, +/-$0.10.

Positive Outlook

  • Revenue forecast of $3.1 billion +/- $100 million.
  • Adjusted operating margin of approximately 48.5%, +/-70 bps.
  • Adjusted EPS to be $2.52, +/-$0.10.
  • Quarterly cash dividend of $0.86 per outstanding share of common stock was declared.
  • Continued alignment with emerging applications presents tremendous growth opportunities.

Challenges Ahead

  • Revenue is expected to moderate given the continued economic uncertainty.
  • Normalizing supply chains are expected.
  • Reported operating margin of approximately 31.9%, +/-130 bps.
  • Reported EPS to be $1.64, +/-$0.12.
  • Actual results may differ materially due to various important factors.

Revenue & Expenses

Visualization of income flow from segment revenue to net income