Analog Devices, Inc ( ADI ) stock traded higher Tuesday after the company reported fiscal fourth-quarter results.

The company’s revenue declined 10% year-on-year to $2.44 billion, beating the analyst consensus estimate of $2.40 billion. Adjusted EPS of $1.67 beat the analyst consensus estimate of $1.64.

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Analog Devices’ Industrial revenue declined by 21% Y/Y to $1.07 billion. Automotive revenue decreased 2% Y/Y to $716.96 million.

Communications revenue declined by 18% to $275.57 million, and Consumer revenue increased by 31% to $379.69 million.

The adjusted gross margin declined by 230 bps to 67.9% as lower revenue weighed on the profits. The adjusted operating margin fell by 360 bps to 41.1%.

Analog Devices ( ADI ) held $2.36 billion in cash and equivalents as of November 2, 2024, generating $1.05 billion in operating cash flow.

According to CEO and Chair Vincent Roche, Analog Devices ( ADI ) reported revenue, profitability, and earnings per share exceeding its midpoint guidance, reflecting strong business momentum and effective execution. Despite unprecedented inventory challenges leading to a historic revenue decline in fiscal 2024, the company maintained operating margins above 40%, showcasing the resilience of its business model.

Analog Devices’ quarterly cash dividend of $0.92 per outstanding share of common stock will be paid on December 20 to all shareholders of record at the close of business on December 9.

CFO Richard Puccio noted a rebound in bookings during the fourth quarter, especially in the Automotive segment, following a temporary decline in the third quarter. While macroeconomic uncertainties continue to temper recovery, Analog Devices ( ADI ) remains cautiously optimistic about achieving significant growth in fiscal 2025.

Outlook: Analog Devices ( ADI ) expects fiscal first-quarter 2025 revenue of $2.35 billion, +/- $100 million, versus the consensus of $2.34 billion. The company projects adjusted EPS of $1.53, +/-$0.10, against the consensus of $1.56.

Price Action: ADI stock traded higher by 5.47% at $235.80 premarket at the last check Tuesday.

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