Analog Devices (NASDAQ:ADI) offered a weaker-than-expected forecast for this quarter, sending its shares 2.6% lower in pre-open Tuesday.
For its fourth fiscal quarter, the company reported adjusted EPS of $2.01 on revenue of $2.72 billion, which compares to the average analyst estimate for EPS of $2.01 on revenue of $2.7 billion.
The adjusted gross margin came in at 70.2% while the operating margin was 44.7%.
“For the fourth quarter, ADI delivered revenue and profitability above the midpoint of our outlook, despite the difficult macroeconomic environment. For the year, 2023 was our third consecutive year of record revenue, led by the strength of our Industrial and Automotive businesses,” said Vincent Roche, CEO and Chair.
For this quarter, ADI sees adjusted EPS at $1.70 on revenue of $2.5 billion, both that the midpoint of the outlook. The Street was looking for a profit per share of $1.90 on revenue of $2.68 billion.
“As outlined last quarter, we expect customer inventory digestion to persist into the first half of the year, a reflection of our return to normal lead times and the challenging macro landscape. Despite that backdrop, the robustness of our business model and our continued focus on execution excellence will buttress our operating margins and free cash flow through the cycle,” Roche added.