Analog Devices posts record Q3 2021 revenue of $1.76 billion

Analog Devices Inc. (NASDAQ: ADI) had released its fiscal Q3 2021 financial results for the period ending July 31, 2021. The semiconductor company reported record-high revenue of $1.76 billion, a 21% YoY growth. There was sequential growth in all end markets underscored by record Automotive and Industrial revenue. 

Analog reports a free cash flow of $2.2 billion

The company’s operating cash flow was $2.5 billion in Q3 2021 with a free cash flow of $2.2 billion, approximately 34% of total revenue on a trailing 12-months basis. CEO Vincent Roche said:

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“ADI delivered record revenue and earnings for the second consecutive quarter with continued gross and operating margin expansion. All markets increased sequentially with our Industrial and Automotive segments once again achieving records. Robust bookings across all end markets, combined with lean inventories and ongoing capacity additions will enable us to close this year on a high note and continue to grow into fiscal 2022.”

Roche added:

“The economic recovery continues to take shape with demand still far exceeding supply, underscoring the importance of semiconductors across all industries. We continue to execute soundly, and I have never been more confident about the future of ADI’s franchise as our solutions become more vital in the modern digital age. Our ethos of innovation, deep customer engagements, and alignment with favorable secular growth drivers position us to deliver strong returns in the years to come.”

Analog Devices expects revenue of between $1.78 in Q4 2021

For fiscal Q4 2021, the company expects revenue of around $1.78 billion-plus/minus $70 million. Analog Devices expect an operating margin at the midpoint of the revenue guidance of around 34.2% plus or minus 140 basis points and an adjusted operating margin of around 43.7%. As a result, the company anticipates reported EPS of between $1.22 and $1.44 and adjusted EPS of between $1.61 and $1.83 in Q4 2021.  The Q4 2021 outlook is based on current estimates, and results could differ considerably due to risks such as uncertainty caused by the pandemic.

In Q3 2021, the company returned over $400 million to its shareholders via share repurchases and dividends. In addition, the company’s board declared a cash dividend of $0.69 per outstanding common stock share in Q3 2021. The dividend will be payable on September 8, 2021, to shareholders that will be on record as of August 27, 2021.