ADI Q4 Beats Expectations with Automotive Recovery

On November 26 (local time), Analog Devices (ADI), a leading player in analog semiconductor solutions, announced its financial results for the fourth quarter of fiscal year 2024, which ended on November 2, 2024. Benefiting from a recovery in automotive customer orders, ADI reported revenue of $2.44 billion for the quarter, a year-on-year decline of 10%. The figure aligned with the company's guidance and exceeded the $2.41 billion forecast by analysts surveyed by LSEG. Adjusted earnings per share (EPS) came in at $1.67, surpassing the consensus estimate of $1.64.

In terms of segment performance, ADI's largest division, the Industrial segment, reported revenue of $1.07 billion, down 21% year-on-year, contributing 44% to the total quarterly revenue. This reflects the ongoing challenges in the industrial semiconductor market. The Automotive segment, the company's second-largest division, generated $720 million in revenue, a modest 2% decline compared to the previous year but exceeding analysts' average expectations of $653.8 million. The improvement in automotive demand marked a notable highlight for the quarter.

ADI's Chief Financial Officer, Richard Puccio, noted in the earnings release that orders began to recover during the fourth quarter, with a particularly strong rebound in automotive-related demand.

Looking ahead to the first quarter of fiscal year 2025, ADI projects revenue of $2.35 billion, plus or minus $100 million, in line with market expectations. Adjusted EPS is anticipated to be $1.53, plus or minus $0.10, slightly below Wall Street's estimate of $1.56.