Analog Devices, Inc. (NASDAQ:ADI) stock fell 1.01% (As on February 19, 11:23:14 AM UTC-4, Source: Google Finance) after the company offered better-than-expected guidance for its second fiscal quarter with double-digit year-over-year growth across all B2B markets and record Industrial and Automotive revenue. Operating cash flow of $5.0 billion and free cash flow of $4.3 billion on a trailing twelve-month basis.   Gross margin of 73.6% expanded 170 basis points year-over-year on favorable mix and cost synergies. OpEx was $733 million, down slightly sequentially as the company balance strategic hiring with the tight discretionary spend and synergy capture. Given the strong operating leverage, combined with the synergy savings, the operating margin was 51.1%. Importantly, the company have already captured nearly all of the $400 million cost synergy goal.

Meanwhile, Industrial, the most diverse and profitable end market represented 52% of revenue and hit another all-time high. This business has grown sequentially for 12 consecutive quarters. All markets increased year-over-year, led by automation, sustainable energy, instrumentation and test. Automotive, which represented 22% of revenue, also achieved another record, increasing 29% year-over-year and 6% sequentially. All applications grew double digits year-over-year as the market-leading positions across battery management and in-cabin connectivity continued to deliver significant growth. Communications, which represented 15% of revenue, grew 18% year-over-year. As expected, comps declined slightly sequentially as strength in wired was offset by softness in wireless due to the timing of 5G deployments. And lastly, consumer, which represented 11% of revenue was down 5% year-over-year and declined 14% sequentially given weaker market trends and seasonality.

ADI in the first quarter of FY 23 has reported the adjusted earnings per share of $2.75, beating the analysts’ estimates for the adjusted earnings per share of $2.61. The company had reported the adjusted revenue growth of 21 percent to $3.25 billion in the first quarter of FY 23, beating the analysts’ estimates for revenue of $3.15 billion.

Additionally, the company has decided to increase its quarterly dividend from $0.76 per outstanding share of common stock to $0.86, which represents an increase of 13% and is the equivalent of $3.44 annually. The increase is effective with the dividend payable on March 8, 2023, to shareholders of record as of the close of business on February 27, 2023.

For the second quarter, the company sees EPS of $2.75 (up or down 10 cents) on revenue of $3.2B (up or down $100 million). Analysts were looking for earnings of $2.42 per share on sales of $3.03B.  The  adjusted operating margin is expected to be of approximately 51.0%, +/-70 bps.