NASDAQ$ADI

Analog Devices Inc · Q2 2023 earnings

Q2 2023 earnings · · Investor relations

Briefing

Reported record revenue, driven by strong performance in Industrial and Automotive sectors, but anticipated moderation in the second half due to economic uncertainty and normalizing supply chains.

Analog Devices reported record revenue for the second quarter of fiscal year 2023, with a 10% year-over-year increase. The growth was primarily driven by record results in the Industrial and Automotive sectors. The company returned $1.5 billion to shareholders through share repurchases and dividends.

  • Revenue increased 10% year-over-year, driven by record results in Industrial and Automotive.
  • Operating cash flow was $4.9 billion and free cash flow was $4.0 billion on a trailing twelve-month basis.
  • $1.5 billion was returned to shareholders through share repurchases and dividends during the second quarter.
  • Company expects revenue to moderate in the second half due to economic uncertainty and normalizing supply chains.

Headline financials

Total Revenue

$3.26B

Previous: $2.97B+9.8%
EPS (adj)

$2.83

Previous: $2.40+17.9%
Operating Margin

34.6%

Previous: 30.9%+12.0%
Gross Margin

65.7%

Previous: 65.4%+0.5%
Capital Expenditures

-$460M

Previous: -$230M-100.3%
Free Cash Flow

$517M

Previous: $553M-6.5%
Net Income

$978M

Previous: $783M+24.8%
Operating Income

$1.13B

Previous: $918M+22.9%
Gross Profit

$2.14B

Previous: $1.94B+10.3%
Cash & Equivalents

$1.18B

Previous: $1.74B-32.2%
Total Assets

$49.5B

Previous: $50.8B-2.5%
Stock-Based Comp

$69.1M

Previous: $71M-2.7%

Revenue & EPS history

Analog Devices · Revenue · Quarterly

$3.26B

Q2 2023+9.8%vs Q2 2022
Beat estimate in 13 of 15 quarters(87%)
ActualEstimate

Revenue by segment

Analog Devices · $3.26B total across 4 segments · Q2 2023

  • Industrial
    $1.74B+16.2%
  • Automotive
    $785M+23.8%
  • Communications
    $454M-4.1%
  • Consumer
    $280M-23.1%

Forward guidance

For the third quarter of fiscal year 2023, the company is forecasting revenue of $3.10 billion, +/- $100 million. They expect reported EPS to be $1.64, +/-$0.12, and adjusted EPS to be $2.52, +/-$0.10.

Tailwinds

  • Revenue forecast of $3.1 billion +/- $100 million.
  • Adjusted operating margin of approximately 48.5%, +/-70 bps.
  • Adjusted EPS to be $2.52, +/-$0.10.
  • Quarterly cash dividend of $0.86 per outstanding share of common stock was declared.
  • Continued alignment with emerging applications presents tremendous growth opportunities.

Headwinds

  • Revenue is expected to moderate given the continued economic uncertainty.
  • Normalizing supply chains are expected.
  • Reported operating margin of approximately 31.9%, +/-130 bps.
  • Reported EPS to be $1.64, +/-$0.12.
  • Actual results may differ materially due to various important factors.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 19 quarterly earnings reports · overlaid with Q2 2023

Historical avgQ2 2023

+1.2%

Avg return

Earnings day

+1.6%

Avg return

5 days after

+0.4%

Avg return

30 days after

53%

38 / 72 earnings

Positive

+9.7%

Q1 2025

Best reaction

-8.3%

Q2 2023

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q2 2026-5.0%
Q1 2026+1.0%+5.2%-8.3%
Q4 2025+4.4%+10.8%+15.9%
Q3 2025+6.1%+10.4%+6.5%
Q2 2025-4.6%-2.4%+2.8%
Q1 2025+9.7%+7.6%-7.2%
Q4 2024-2.9%-2.5%-2.5%
Q3 2024-0.7%+0.9%+1.5%
Q2 2024+8.3%+7.3%+6.7%
Q1 2024+1.3%-0.2%+2.2%
Q4 2023-0.6%-0.4%+6.8%
Q3 2023-1.7%+2.1%-0.7%
Q2 2023-8.3%-6.1%-1.1%
Q1 2023+8.7%+6.8%+3.4%
Q4 2022+6.3%+4.9%+2.8%
Q3 2022-5.0%-8.5%-16.6%
Q2 2022-1.8%-1.4%-11.7%
Q1 2022-1.0%-1.0%+0.9%
Q4 2021-1.6%-4.0%-6.9%
Q3 2021+0.3%+2.0%+3.1%
Q2 2021+9.3%+11.4%+11.2%
Q1 2021-1.5%-0.8%-5.3%
Q4 2020-0.8%+0.5%+5.4%
Q3 2020-0.4%-0.6%-2.5%
Q2 2020+4.4%+4.4%+13.0%
Q1 2020+5.0%-1.0%-28.2%
Q4 2019+0.7%+0.0%+6.0%
Q3 2019-1.5%-3.9%+4.6%
Q2 2019-1.2%-1.5%+13.8%
Q1 2019+1.0%+3.5%+3.1%
Q4 2018+4.9%+3.6%-3.3%
Q3 2018+1.5%+4.3%-1.4%
Q2 2018+3.0%+5.9%+1.6%
Q1 2018-4.3%-1.2%-1.2%
Q4 2017-4.7%-4.2%-4.7%
Q3 2017+5.2%+6.1%+8.3%
Q2 2017-3.1%-7.1%-8.3%
Q1 2017+5.3%+6.0%+7.0%
Q4 2016+5.4%+6.3%+5.2%
Q3 2016-1.2%-1.6%-4.4%
Q2 2016+0.6%
Q1 2016-0.1%
Q4 2015+6.1%
Q3 2015-1.9%
Q2 2015+4.5%
Q1 2015+2.3%
Q4 2014+5.3%
Q3 2014-1.7%
Q2 2014-1.3%
Q1 2014+1.6%
Q4 2013-2.3%
Q3 2013-1.7%
Q2 2013-2.8%
Q1 2013-0.8%
Q4 2012+0.0%
Q3 2012-2.1%
Q2 2012-0.5%
Q1 2012-2.1%
Q4 2011-5.3%
Q3 2011-1.2%
Q2 2011+5.1%
Q1 2011-0.4%
Q4 2010+1.5%
Q3 2010+6.1%
Q2 2010+1.5%
Q1 2009+3.4%
Q1 2010+3.4%
Q2 2009+6.8%
Q4 2009+6.8%
Q4 2007+6.8%
Q3 2008+3.9%
Q3 2009+3.9%

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