Analog Devices, Inc. (NASDAQ:ADI) stock fell 1.99% (As on August 24, 11:46:30 AM UTC-4, Source: Google Finance) after the company forecast fourth-quarter revenue below Wall Street estimates, but said it was working to manage the supply glut to return to growth more quickly in the coming quarters. The company has also missed third-quarter revenue and profit estimates. The semiconductor industry has been facing excess inventory issues, fueled by weak consumer demand amid challenging macroeconomic conditions. Analog Devices said it shipped below end-market demand in the third quarter and expects to do the same in the fourth. The company said the consumer segment, which makes up 10% of its total revenue, is expected to bounce back after the lows in the second quarter.

However, there is growth in growth in Industrial & Automotive segments. The Industrial Segment generated revenue of $1.629 billion, which represents 4% growth and the Automotive segment delivered revenue of $747.55 million, which represents 15% rise.

ADI in the third quarter of FY 23 has reported the adjusted earnings per share of $2.49, missing the analysts’ estimates for the adjusted earnings per share of $2.52. The company had reported 1 percent fall in the adjusted revenue to $3.08 billion in the third quarter of FY 23, missing the analysts’ estimates for revenue of $3.1 billion. Adjusted gross and operating margins came in at 72.2% and 47.8%, respectively. Analysts were looking for 72.6% and 48.6%. Adjusted operating expenses were $752.03 million, up 0.7% from the year-ago fiscal quarter’s level. As a percentage of revenues, adjusted operating expenses were 24.4%, expanding 40 bps year over year. As of Jul 29, 2023, cash and cash equivalents were $1.15 billion, down from $1.18 billion as of Apr 29, 2023. Net cash provided by operations was $1.14 billion in the reported quarter, up from $1.08 billion in the prior fiscal quarter. ADI generated $818 million of free cash flow in the fiscal third quarter.

Additionally, the company has declared a quarterly cash dividend of $0.86 per outstanding share of common stock. The dividend will be paid on September 14, 2023 to all shareholders of record at the close of business on September 5, 2023.

U.S.-based Analog Devices projected fourth-quarter revenue of $2.70 billion, plus or minus $100 million, compared with analysts’ average estimate of $3.01 billion, according to Refinitiv data. Analog Devices also forecast fourth-quarter adjusted earnings of $2 per share, plus or minus 10 cents, below analysts’ estimate of $2.39.