Analog Devices (ADI) Beats Q4 Earnings, Revenue Estimates
Zacks Investment Research | Nov 20, 2018 03:03AM ET
Analog Devices Inc. (NASDAQ:ADI) reported fourth-quarter fiscal 2018 adjusted earnings of $1.55 per share, beating the Zacks Consensus Estimate of $1.52. Moreover, the bottom line increased 6.9% year over year and 1.3% sequentially.
Revenues of $1.6 billion topped the consensus mark of $1.57 billion. Moreover, the top line improved 3.6% year over year and 1.5% sequentially.
The strong growth was driven by robust performance from industrial and communications end-markets.
Coming to share price performance, the stock has lost 4% on a year-to-date basis compared with the industry ’s decline of 10.8%.
Revenues by End Markets
Industrial revenues (49% of the total sales) soared 10% year over year to $788.4 million.
Communications revenues (22% of the total sales) grew 29% year over year and 8% sequentially to $352.2 million.
Automotive revenues (15% of the total sales) jumped 2% from the year-ago quarter but declined 1% from the fiscal third quarter to $245.4 million.
Consumer revenues (13% of the total sales) declined 33% year over year but increased 1% sequentially to $210.7 million.
Operating Details
Non-GAAP gross margin expanded 30 basis points (bps) on a year-over-year basis to 71.2%.
Adjusted operating expenses, as a percentage of revenues, expanded 10 bps from the year-ago quarter but declined 20 bps sequentially to 28.3%.
Non-GAAP operating margin expanded 40 bps on a year-over-year basis and 30 bps sequentially to 43%.
Balance Sheet & Cash Flow
Analog Devices exited the fiscal fourth quarter with cash and cash equivalents of approximately $816.6 million, up from $772.6 million at the end of fiscal third quarter.
Long-term debt was approximately $6.3 billion, down from $6.5 billion at fiscal third quarter-end.
Net cash provided by operations was $714.4 million, up from $620.7 million reported in the fiscal third quarter.
In addition, the company returned $364 million to its shareholders through dividends and share repurchases.
Guidance
For the first quarter of fiscal 2019, Analog Devices expects revenues to be $1.51 billion (+/- $50 million). The Zacks Consensus Estimate for the same stands at $1.51 billion. Non-GAAP gross margins are expected to be approximately 70.8% (+/- 20 bp).
Interest and other expenses of the company are projected at approximately $56 million.
Get The News You Want
Non-GAAP earnings are expected to be $1.28 (+/- $0.07) per share. The consensus mark for the same is pegged at $1.34 per share.
Zacks Rank & Stocks to Consider
Currently, Analog Devices has a Zacks Rank #3 (Hold).Some better-ranked stocks in the broader technology sector include boohoo group plc (OTC:BHOOY) , QuinStreet, Inc. (NASDAQ:QNST) and AMETEK, Inc. (NYSE:AME) , each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Long-term earnings growth rate for boohoo group, QuinStreet and AMETEK is currently pegged at 25%, 25% and 11.18%, respectively.
Will You Make a Fortune on the Shift to Electric Cars?
Here's another stock idea to consider. Much like petroleum 150 years ago, lithium power may soon shake the world, creating millionaires and reshaping geo-politics. Soon electric vehicles (EVs) may be cheaper than gas guzzlers. Some are already reaching 265 miles on a single charge.
With battery prices plummeting and charging stations set to multiply, one company stands out as the #1 stock to buy according to Zacks research.
It's not the one you think.
Zacks Investment Research
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.