Analog Devices Inc. (ADI) saw its shares surge 7% in pre-market trading on Wednesday, following the chipmaker's impressive first-quarter fiscal 2025 results, driven by robust demand in the consumer electronics segment and an optimistic outlook for the ongoing quarter.
The Massachusetts-based semiconductor company, known for its high-performance analog and mixed-signal integrated circuits, reported better-than-expected earnings and revenue for the three-month period ended February 1, 2025, defying the challenging macroeconomic and geopolitical backdrop.
Analog Devices' first-quarter revenue declined 4% year-over-year to $2.42 billion but exceeded analysts' expectations of $2.36 billion. The company's adjusted earnings per share (EPS) of $1.63 also surpassed the consensus estimate of $1.54, despite a 5.8% drop from the prior-year period.
The robust performance was primarily driven by the consumer segment, which witnessed a remarkable 19% year-over-year increase in revenue, reaching $322.9 million. This growth was fueled by strong demand for AI-driven devices, premium smartphones, and smart home products, underscoring the company's strategic positioning in the rapidly evolving consumer electronics market.
While the industrial and automotive segments experienced year-over-year declines, the company's bookings continued to show gradual improvement, positioning Analog Devices for sequential growth in the second quarter. CEO Vincent Roche expressed confidence in the company's recovery, attributing it to "improving cyclical dynamics and numerous new wins across our franchise converting to revenue."
For the second quarter of fiscal 2025, Analog Devices provided an upbeat outlook, forecasting revenue of $2.5 billion, plus or minus $100 million, exceeding analysts' estimates of $2.46 billion. The company also expects adjusted EPS of $1.68, plus or minus $0.10, compared to the consensus forecast of $1.66.
Reflecting its commitment to shareholder value, Analog Devices announced an 8% increase in its quarterly dividend to $0.99 per share, along with an additional $10 billion authorization for share repurchases, bringing the total remaining buyback authorization to a staggering $11.5 billion.
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