Analog Devices (ADI, Financial), a leading player in the analog chip industry, reported first-quarter earnings and provided a second-quarter outlook that exceeded market expectations. Following this announcement, ADI's stock rose by 5% in pre-market trading.
For the first quarter of fiscal year 2025, ending February 1, ADI's revenue dropped 4% year-over-year to $2.42 billion, surpassing analysts' expectations of $2.36 billion. Adjusted earnings per share were $1.63, also beating the anticipated $1.54.
CEO and Chairman Vincent Roche highlighted that despite challenging macroeconomic and geopolitical conditions, the company's revenue and earnings exceeded their mid-point forecast. He attributed this success to improved cyclical dynamics and new business wins in their franchise sectors.
Looking ahead, ADI forecasts second-quarter revenue of $2.5 billion, topping the expected $2.46 billion, with adjusted earnings per share projected at $1.68, slightly above the anticipated $1.66.
CFO Richard Puccio expressed confidence in continued growth, citing strong performance in the industrial and automotive sectors as key contributors to sequential and year-over-year growth in the second quarter. The board approved an 8% increase in the quarterly dividend to $0.99 per share and expanded stock repurchase authorization by $10 billion, totaling approximately $11.5 billion.
ADI is recognized as a "bellwether" in the analog chip sector, focusing on high-performance analog, mixed-signal, and digital signal processing technologies. Its products are widely used across various industries, including industrial, automotive, communication, medical, and consumer electronics.
