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May 04, 2024

Analog Devices Q2 2024 Earnings Report

ADI delivered second quarter revenue above the midpoint of our outlook, and achieved profitability and earnings per share above the high-end of our outlook.

Key Takeaways

Analog Devices reported Q2 2024 revenue of $2.16 billion, exceeding the midpoint of their outlook. The company's profitability and EPS were above the high-end of their outlook due to the strength and resiliency of their business model, coupled with disciplined cost control.

Revenue of $2.16 billion, above the midpoint of our outlook

Operating cash flow of $4.3 billion and free cash flow of $3.1 billion on a trailing twelve-month basis

Returned over $675 million to shareholders through dividends and repurchases in the second quarter

Inventory rationalization across our broad customer base is stabilizing, clearing a path for us to return to sequential growth in the third quarter

Total Revenue
$2.16B
Previous year: $3.26B
-33.8%
EPS
$1.4
Previous year: $2.83
-50.5%
Gross Margin
54.7%
Previous year: 65.7%
-16.7%
Operating Margin
17.9%
Previous year: 34.6%
-48.3%
Gross Profit
$1.18B
Previous year: $2.14B
-45.0%
Cash and Equivalents
$1.94B
Previous year: $1.18B
+64.7%
Free Cash Flow
$620M
Previous year: $797M
-22.3%
Total Assets
$48.9B
Previous year: $49.5B
-1.4%

Analog Devices

Analog Devices

Analog Devices Revenue by Segment

Forward Guidance

For the third quarter of fiscal 2024, we are forecasting revenue of $2.27 billion, +/- $100 million. At the midpoint of this revenue outlook, we expect reported operating margin of approximately 20.1%, +/-200 bps, and adjusted operating margin of approximately 40.0%, +/-100 bps. We are planning for reported EPS to be $0.71, +/-$0.10, and adjusted EPS to be $1.50, +/-$0.10.

Revenue & Expenses

Visualization of income flow from segment revenue to net income