Analog Devices tops fiscal Q2 2022 earnings and revenue estimates

Analog Devices (NASDAQ: ADI) has announced its fiscal Q2 2022 financial results for the quarter ending April 30, 2022. The company reported revenue of $2.97 billion, beating consensus estimates of $2.84 billion. Earnings per share also topped estimates at $2.4 per share versus analyst estimates of $2.11 per share.

Analog Devices posts fifth consecutive quarterly record revenue

CEO and chair Vincent Roche said:

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ADI delivered its fifth consecutive quarter of record revenue, illustrating the unprecedented demand for our technologies and our ability to increase output in a challenging supply backdrop. Top line strength combined with successful synergy execution enabled adjusted gross margin, operating margin and EPS to achieve new highs.

Despite the ever-growing geopolitical uncertainty and current supply chain disruptions, the company is entering the second half of the fiscal year from a solid position with enhanced capacity and growing momentum in bookings.

Roche continued:

Market leadership in numerous secular mega trends such as automation, electrification, and advanced connectivity is a testament to the depth and breadth of our performance leading analog, mixed signal, and power portfolio. Our solutions enable the intelligent edge, accelerating digitalization across industries.

Analog Devices reported double-digit QoQ growth in all B2B markets. The company increased stock repurchases to around $776 million and paid dividends of $398 million, returning around $1.17 billion to shareholders. The board declared a quarterly dividend of $0.76 per outstanding common share payable on June 9, 2022, to all shareholders that will be on record as of May 31, 2022.

Q3 revenue to range from $2.95 billion  and $3.15 billion

For the third quarter, the company expects revenue of between $2.95 billion and $3.15 billion, compared to consensus estimates of $2.89 billion. The company is anticipating earnings per share of between $2.32 and $2.52 in the third quarter, while analysts hold for $2.16 per share earnings. The third quarter forecasts are pegged on present expectations, with results likely to differ materially.

Roche concludes:

Continued efforts to deepen customer relationships, enhance operational resiliency, and our unrelenting focus on innovation, gives me great confidence in our ability to accelerate long term growth while driving positive societal impact.