Q1 2024 Earnings Summary
Reported on Feb 21, 2024 (Before Market Open)
Pre-Earnings Price$189.40Last close (Feb 20, 2024)
Post-Earnings Price$190.26Open (Feb 21, 2024)
Price Change
$0.86(+0.45%)
- Bookings are improving across most sectors, indicating a potential recovery in demand expected in the second half of fiscal 2024.
- The worst of the inventory correction is expected to be over by the end of Q2, and the company anticipates a return to a more normalized growth pattern in the second half as customers replenish their order books and bookings approach parity.
- Despite lower revenue, Analog Devices has maintained strong gross margins, and expects margins to improve in the second half as utilization increases and mix improves.
- ADI is guiding for a revenue decline of mid-30% year-over-year, which is unprecedented outside of major downturns like 2001 and 2009, indicating a severe inventory correction.
- Gross margins are expected to decline further to 67% due to unfavorable mix and lower utilization, with the recovery trajectory being uncertain and dependent on unpredictable revenue trends. , ,
- The industrial segment is projected to decline over 20% sequentially in Q2, reflecting continued weakness in ADI's core markets and significant challenges in its largest end market.
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