Analog Devices (NASDAQ:ADI) found its shares up Wednesday after the company reported better-than-expected earnings for the fiscal first quarter. The chipmaker posted adjusted earnings per share of $2.75, higher than the $2.61 expected from analysts on FactSet. Its revenue came in at $3.25 billion, above Wall Street’s expectations of $3.15 billion.
Operating cash flow was $5.0 billion and free cash flow of $4.3 billion on a trailing 12-month basis
The company returned over $1 billion to shareholders through dividends and repurchases in the first quarter
Raised quarterly dividend by 13%, marking our fifth consecutive double-digit increase
Says CEO Vincent Roche, “ADI continues to execute exceptionally well with revenue growth of 21% year-over-year and record earnings per share,” said Vincent Roche, CEO and Chair. “Encouragingly, despite the macro uncertainty, demand remains resilient in our Industrial and Automotive markets, driven by continued momentum across secular growth areas, such as automation and electrification.”
For the second quarter of fiscal 2023, Analog is forecasting revenue of $3.20 billion, +/- $100 million. At the midpoint of this revenue outlook, it expects reported operating margin of approximately 34.7%, +/-130 bps, and adjusted operating margin of approximately 51.0%, +/-70 bps.
Analog is planning for reported EPS to be $1.85, +/-$0.10, and adjusted EPS to be $2.75, +/-$0.10.
ADI shares leaped $9.14, or 5%, to $191.68.