Analog Devices Q3 Result Surpass Consensus, Notes Margin Expansion, Declares Dividend
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  • Analog Devices Inc ADI reported third-quarter FY21 revenue growth of 21% year-on-year to $1.76 billion beating the analyst consensus of $1.71 billion.
  • HPC and Automotive drove Apple Inc AAPL supplier Taiwan Semiconductor Manufacturing Co Ltd's TSM Q2 sales of $13.29 billion, beating the analyst consensus of $13.17 billion.
  • End Markets: Analog Devices' Industrial revenue grew 29% Y/Y to $1 billion.
  • Automotive revenue increased 80% Y/Y to $290 million. 
  • Consumer revenue rose 16% Y/Y to $178.2 million.
  • Communications revenue declined 21% Y/Y to $288.7 million.
  • Margins: The adjusted gross margin expanded 170 bps to 71.6%.
  • The adjusted operating margin grew 130 bps to 43.6%.
  • Analog Devices held $1.5 billion in cash and equivalents. It generated $630 million in operating cash flow during the quarter.
  • Adjusted EPS of $1.72 beat the analyst consensus of $1.62.
  • The board declared a quarterly cash dividend of $0.69 per share, payable on September 8, 2021, to shareholders of record on August 27, 2021.
  • Analog Devices returned over $400 million to shareholders via dividends and share repurchases.
  • Outlook: Analog Devices sees Q4 revenue of $1.71 billion - $1.85 billion versus the analyst consensus of $1.75 billion.
  • The company sees adjusted EPS of $1.61 - $1.83 against the consensus of $1.69.
  • Price Action: ADI shares traded higher by 0.27% at $166.7 on the last check Wednesday.
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