08:53 AM EST, 02/19/2025 (MT Newswires) -- Analog Devices' ( ADI ) fiscal first-quarter results fell less than expected year over year amid gradual improvement in bookings, while the chipmaker issued an outlook above market estimates at the midpoint for the ongoing three-month period.

Adjusted earnings came in at $1.63 per share for the quarter ended Feb. 1, down from $1.73 the year before, but ahead of the FactSet-polled consensus of $1.54. Revenue decreased 4% year over year to $2.42 billion, but topped the Street's view for $2.36 billion. The stock gained 4% in premarket activity.

"(Analog Devices ( ADI )) delivered first quarter revenue, profitability, and earnings per share above the midpoint of our outlook, despite the challenging macro and geopolitical backdrop," Chief Executive Vincent Roche said in a statement. "Our recovery is being propelled by improving cyclical dynamics and numerous new wins across our franchise converting to revenue."

For the current quarter, the semiconductor manufacturer anticipates adjusted EPS of $1.68, plus or minus $0.10, and revenue of $2.5 billion, plus or minus $100 million. The Street is looking for non-GAAP EPS of $1.66 and sales of $2.46 billion.

"Bookings continued to show gradual improvement during the first quarter with strength in industrial and automotive positioning us to grow sequentially and year-over-year in our second fiscal quarter," according to Chief Financial Officer Richard Puccio. "We remain confident that fiscal 2025 represents a return to growth for ADI."

In the first quarter, revenue in the company's industrial segment revenue fell 10% year over year to $1.08 billion, while automotive moved down 2% to $732.5 million. Consumer sales climbed 19% to $322.9 million, while communications revenue declined to $289.9 million from nearly $302 million in the prior-year period.

Gross margin improved by 30 basis points year over year to 59% during the quarter, while the operating margin fell 300 basis points to 20.3%. Total operating expenses rose to about $939 million from $888 million last year, according to the company.

Analog Devices ( ADI ) said late Tuesday that its board of directors approved an 8% increase in its quarterly dividend to $0.99 a share. The dividend is payable March 17 to shareholders on record as of March 4.