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ADI Nasdaq· Analog Devices Inc
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ADI Nasdaq· Analog Devices Inc
Earnings report Q1 2024

ADI's Revenue Declines 23% in Latest Quarter

Segments of revenue

In the latest quarter, ADI reported total revenue of $2.51 billion, representing a 23% decrease compared to the same period in the prior fiscal year. The Industrial segment accounted for the largest portion of revenue at 48%, followed by Automotive at 29%, Communications at 12%, and Consumer at 11%.

Strengths

Despite the overall decline in revenue, ADI experienced increased demand in the Automotive end market, particularly in cabin electronics. This helped partially offset the broad-based decline in demand for their products. Additionally, the company benefited from an additional week of operations in the first quarter of fiscal 2024 compared to the same quarter in fiscal 2023.

Challenges

ADI faced challenges due to a broad-based decline in demand for their products, resulting in the 23% decrease in revenue. The Communications segment experienced the largest decline of 37%, while the Consumer segment declined by 22%. These declines reflect the challenging market conditions in these sectors.

Noteworthy

ADI sells its products globally through various sales channels, including a direct sales force, third-party distributors, independent sales representatives, and their website. Distributors accounted for 61% of revenue, while direct customers contributed 37%. The company also serves other customers, such as the U.S. government, government prime contractors, and certain commercial customers.

Summary

ADI's latest quarter performance saw a 23% decline in revenue, primarily driven by a broad-based decline in demand for their products. However, the company experienced increased demand in the Automotive segment, specifically in cabin electronics. ADI's revenue is distributed across various sales channels, with distributors and direct customers being the primary contributors. The challenging market conditions in the Communications and Consumer segments pose ongoing challenges for the company.

Source documents

Form 10-Q  filed on Feb 21, 2024
122 pages scanned

Reference data

Company financials Q1 revenue 0
Analyst estimates Q1 EPS missed by 0.00%
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