Analog Devices Beats Q4 Estimates

Analog Devices, Inc. ADI announced financial results Tuesday for its fourth quarter and fiscal year 2014, which ended November 1, 2014.

Fourth quarter revenue came in at $814 million, above estimates of $804.58 million and the $678.13 million reported in the year-ago period.

Non-GAAP diluted EPS was $0.69, above estimates of $0.68 and the $0.63 reported in the prior year period. GAAP diluted EPS was $0.34.

The GAAP gross margin was 59.7 percent of revenue; Non-GAAP gross margin was 66.4 percent of revenue.

The GAAP operating margin was 18.4 percent of revenue; Non-GAAP operating margin of 33.2 percent of revenue.

“During the fourth quarter order rates were stable and ADI executed very well, resulting in record revenue and earnings growth that was near the high end of our guidance,” said Vincent Roche, President and CEO. “Our cash flow and balance sheet remained strong and we returned $304 million to shareholders through dividends and increased share repurchases.”

“We are planning for revenue in the first quarter to be in the range of $745 million to $775 million, which at the mid-point represents an increase of 21 percent year-over-year,” said Mr. Roche. “We are carefully managing factory utilization rates and expenses, and positioning ADI for better operating leverage, which is likely to come as early as our second quarter.”

ADI also announced that its Board of Directors has declared a cash dividend of $0.37 per outstanding share of common stock. The dividend will be paid on December 16, 2014 to all shareholders of record at the close of business on December 5, 2014.

Analog Devices, Inc. traded at $52.80 in the aftermarket, up 2.11 percent.