MASSACHUSETTS: Analog Devices Inc. ADI reported fourth-quarter fiscal 2015 earnings of $1.03 per share, which easily beat the Zacks Consensus Estimate of 83 cents. Adjusted earnings per share excluded one-time items but included stock-based compensation expenses.
The company’s shares were up 6.37% on Tuesday, encouraged by good fourth-quarter financial results.
Revenues
Analog Devices generated revenues of $978.7 million, up 13.4% sequentially and 20.2% year over year. Also, revenues came above the higher end of the company’s guidance range of $880-$940 million, surpassing the Zacks Consensus Estimate of $909.0 million.
The results were driven by strength in portable consumer devices and partially by improvement in the wireless communications infrastructure market.
Revenues by End Markets
Industrial market generated 38% of Analog Devices’ total revenue (down 3.9% sequentially and 1.7% year over year). This represents a diversified market for the company, including industrial automation, instrumentation, energy, defense and health care segments.
Revenues in all sub-segments within the industrial business decreased sequentially with the exception of aerospace and defense, which was comparable with the prior quarter.
Communications generated 16% of total revenue, up 12.3% sequentially but down 23.4% year over year.
While Wireline applications decreased sequentially, the mixture of inventory replacement and improving wireless CapEx spend drove strong sequential revenue performance in wireless infrastructure. This was led by solid customer demand for the company’s innovative microwave and RF solutions.
The Automotive segment generated around 14% of Analog Devices’ fourth-quarter revenues, up 1.6% sequentially but down 2.0% year over year.
The Consumer segment, which Analog Devices clubbed with its computing and handset businesses, was up 12.3% sequentially but down 23.4% year over year. It accounted for 32% of total revenue.
Margins
The pro forma gross margin was 65.7%, down 34 basis points (bps) sequentially and 65 bps year over year. The sequential decline was led by an unfavorable product mix.
Analog Devices reported operating expenses of $291.8 million, up 6.1% sequentially and 8.8% year over year. The pro forma operating margin of 35.9% was up 171 bps sequentially and 248 bps year over year.
Net Profit
On a GAAP basis, Analog Devices recorded a net profit of $96.305 million or 30 cents per share compared with $216.5 million or 68 cents in the prior quarter.
The company generated adjusted net profit of $326.1 million compared with $245.7 million in the prior quarter. Pro-forma earnings came in at $1.03 per share compared with 77 cents in the previous quarter.
