Analog Devices (NASDAQ: ADI) is a high-performance, world-class analog tech firm that recorded $1.94 EPS in the first quarter of 2022, topping the $1.77 analyst estimate by 17 cents. In addition, the company recorded $2.88 billion total revenue in the first quarter, also topping the $2.6 billion consensus estimate.
Analog tops Q1 consensus estimates
The free cash flow and operating cash flow came to $2.78 billion and $3.16 billion, respectively. It also completed an accelerated repurchase program of $2.5 billion, retiring around $14 million shares. In addition, the company announced a dividend growth of 10%, which is the 19th time it has increased in the last 18 years.
Analog Device’s Chief Executive Officer and President, Vincent Roche, said:
ADI delivered its fourth consecutive quarter of record revenue with momentum across all end markets and geographies. The growing demand for our solutions and our commitment to operational excellence enabled adjusted gross margin, operating margin and EPS to achieve new highs.
Mr Roche claimed that he was confident that higher backlog, increased bookings, and capacity investments will allow the company to continue performing well throughout the 2022 fiscal year.
The CEO continued:
Our high-performance analog, mixed signal and power technologies are increasingly vital to our customer’s digitalization journeys. Through years of strategic investment, both organic and inorganic, we’ve built an unparalleled performance-leading portfolio equipped to capitalize on the increasing demand surrounding secular megatrends such as automation, electrification, and advanced connectivity.
The man at the company’s helm said that through many years of both inorganic and organic strategic investments, the company had built a great performance-leading portfolio designed to take advantage of the rising demand involving secular megatrends like advanced connectivity, electrification and automation.
The financial outlook for Q2 2022
For the second quarter of the 2022 fiscal year, the company forecasts $2.8 billion in revenue. At the middle of this revenue forecast, the company expects to report an operating margin of roughly 26.5% and a 42.5% adjusted operating margin. The company also forecasts $1.14 EPS and a $2.07 adjusted EPS. This financial outlook is using current expectations that may differ materially in future.