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Oct 28, 2023

Analog Devices Q4 2023 Earnings Report

ADI delivered revenue and profitability above the midpoint of their outlook, despite the difficult macroeconomic environment.

Key Takeaways

Analog Devices reported Q4 revenue of $2.7 billion. Despite a challenging macroeconomic environment, the company's revenue and profitability exceeded expectations. Customer inventory digestion is expected to persist into the first half of the year.

Fourth quarter revenue of $2.7 billion with continued double-digit year-over-year growth in Automotive

Fiscal 2023 revenue of $12.3 billion driven by new records in Industrial & Automotive

Fiscal 2023 operating cash flow of $4.8 billion and free cash flow of $3.6 billion

Returned more than $4.6 billion to shareholders in fiscal 2023, including $3.0 billion of share repurchases and $1.7 billion of dividends

Total Revenue
$2.72B
Previous year: $3.25B
-16.4%
EPS
$2.01
Previous year: $2.73
-26.4%
Gross Margin
60.6%
Previous year: 66%
-8.2%
Operating Margin
23.4%
Previous year: 33.9%
-31.0%
Gross Profit
$1.65B
Previous year: $2.14B
-23.2%
Cash and Equivalents
$958M
Previous year: $1.47B
-34.9%
Free Cash Flow
$711M
Previous year: $845M
-15.9%
Total Assets
$48.8B
Previous year: $50.3B
-3.0%

Analog Devices

Analog Devices

Analog Devices Revenue by Segment

Forward Guidance

For the first quarter of fiscal 2024, ADI is forecasting revenue of $2.5 billion, +/- $100 million. They expect reported EPS to be $0.91, +/- $0.10, and adjusted EPS to be $1.70, +/- $0.10.

Positive Outlook

  • Revenue of $2.5 billion, +/- $100 million
  • Includes the benefit of a 14th week in the quarter
  • Reported operating margin of approximately 23.1%, +/- 130 bps
  • Adjusted operating margin of approximately 41.5%, +/- 70 bps
  • Reported EPS to be $0.91, +/- $0.10

Challenges Ahead

  • Customer inventory digestion to persist into the first half of the year
  • Challenging macro landscape
  • Actual results may differ materially
  • Based on current expectations
  • Uncertainty as to the long-term value of our common stock

Revenue & Expenses

Visualization of income flow from segment revenue to net income