Analog Devices (ADI) Tops Q3 EPS by 4c, Revenues Beat; Offers Q4 EPS/Revenue Mid-Point Guidance Below Consensus

August 21, 2019 8:02 AM EDT

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Analog Devices (NASDAQ: ADI) reported Q3 EPS of $1.26, $0.04 better than the analyst estimate of $1.22. Revenue for the quarter came in at $1.48 billion versus the consensus estimate of $1.45 billion.

  • Revenue of $1.48 billion with B2B markets down 3% year-over-year
  • Operating Cash Flow of $2.3 billion and Free Cash Flow of $2.0 billion on a trailing twelve months basis
  • Returned over $300 million to shareholders in the third quarter through dividends and share repurchases

“In what continues to be a challenging macroeconomic environment, we once again executed soundly and delivered strong financial results,” said Vincent Roche, President and CEO. “Revenue and operating margins came in above the midpoint of guidance as ongoing broad-based weakness compared to the year ago quarter was balanced by growth in new areas such as 5G and electric vehicles. Further, we returned more than $300 million of cash to our shareholders in the third quarter through share repurchases and dividends.”

“While these uncertain times do not seem to be abating in the near term, ADI has successfully navigated macroeconomic challenges many times before. The key to our resilience is maintaining our long-term focus while remaining agile in response to market dynamics. Our focus on cutting edge innovation and diversity across products, customers and applications has allowed us to continue to generate strong revenue growth, profitability, and cash flow for more than five decades.”

GUIDANCE:

Analog Devices sees Q4 2019 EPS of $1.15-$1.29, versus the consensus of $1.29. Analog Devices sees Q4 2019 revenue of $1.4-1.5 billion, versus the consensus of $1.49 billion.

  • For the fourth quarter of fiscal 2019, we are forecasting revenue of $1.45 billion, +/- $50 million.
  • At the midpoint of this revenue outlook, we expect reported operating margins of approximately 29.2%, and adjusted operating margins of approximately 40.0%.
  • We are planning for reported EPS to be $0.86, +/- $0.07, and adjusted EPS to be $1.22, +/- $0.07.
  • Our fourth quarter fiscal 2019 outlook is based on current expectations and actual results may differ materially, as a result of, among other things, the important factors discussed at the end of this release.

For earnings history and earnings-related data on Analog Devices (ADI) click here.



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