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Jul 29, 2023

Analog Devices Q3 2023 Earnings Report

ADI executed well and delivered third quarter results within expectations, but customer inventory adjustments accelerated as economic conditions deteriorated.

Key Takeaways

Analog Devices reported Q3 2023 revenue of $3.08 billion. Despite a challenging operating environment, the company delivered results within expectations, driven by continued year-over-year growth in the Industrial and Automotive segments. Customer inventory adjustments have accelerated.

Revenue of $3.08 billion with continued year-over-year growth in Industrial & Automotive.

Operating income was $929 million with an operating margin of 30.2%.

Diluted earnings per share was $1.74.

Returned $1.1 billion to shareholders via $0.7 billion in share repurchases and $0.4 billion in dividends during the third quarter.

Total Revenue
$3.08B
Previous year: $3.11B
-1.1%
EPS
$2.49
Previous year: $2.52
-1.2%
Gross Margin
63.8%
Previous year: 65.7%
-2.9%
Operating Margin
30.2%
Previous year: 28.7%
+5.2%
Gross Profit
$1.96B
Previous year: $2.04B
-4.0%
Cash and Equivalents
$1.15B
Previous year: $1.52B
-24.6%
Free Cash Flow
$818M
Previous year: $1.08B
-24.5%
Total Assets
$49.3B
Previous year: $50.3B
-2.0%

Analog Devices

Analog Devices

Analog Devices Revenue by Segment

Forward Guidance

For the fourth quarter of fiscal 2023, ADI is forecasting revenue of $2.70 billion, +/- $100 million. At the midpoint of this revenue outlook, the company expects reported operating margin of approximately 26.8%, +/-130 bps, and adjusted operating margin of approximately 44.0%, +/-70 bps. They are planning for reported EPS to be $1.19, +/-$0.10, and adjusted EPS to be $2.00, +/-$0.10.

Revenue & Expenses

Visualization of income flow from segment revenue to net income