Analog Devices, Inc. (NASDAQ:ADI) stock fell 0.94% (As on August 22, 11:27:45 AM UTC-4, Source: Google Finance) after the company posted better than expected results for third quarter of FY 24. Analog Devices’ Industrial revenue declined by 37% year-on-year to $1.06 billion. Automotive revenue decreased 8% Y/year-on-year to $670.3 million. Communications revenue declined by 26% to $266.6 million, and Consumer revenue increased by 3% to $316.6 million. The adjusted gross margin declined by 430 bps to 67.9% as lower revenue weighed on the profits. The adjusted operating margin fell by 660 bps to 41.2%.

ADI in the third quarter of FY 24 has reported the adjusted earnings per share of $1.58, beating the analysts’ estimates for the adjusted earnings per share of $1.50. The company had reported the adjusted revenue decline of 25 percent to $2.31 billion in the third quarter of FY 24, beating the analysts’ estimates for revenue of $2.27 billion. Softness in the industrial, communications and automotive end-markets led to the year-over-year decline in the top line.

Additionally, the company declared a quarterly cash dividend of $0.92 per outstanding share of common stock. The dividend will be paid on September 17, 2024 to all shareholders of record at the close of business on September 3, 2024. As of Aug 3, 2024, cash and cash equivalents, and short-term investments were $2.54 billion, up from $2.36 billion as of May 4, 2024. The long-term debt was $6.66 billion at the end of third-quarter fiscal 2024 compared with $6.61 billion at the end of second-quarter fiscal 2024. Net cash provided by operations was $855 million in the reported quarter, up from $808 million in the prior quarter. ADI generated $701 million in free cash flow in the fiscal third quarter. Analog Devices returned $574 million to its shareholders in the fiscal third quarter, of which dividend payments accounted for $456 million and repurchased shares amounted to $118 million.

Analog Devices expects fourth-quarter revenue of $2.40 billion, +/- $100 million, versus the consensus of $2.38 billion. At the midpoint of this revenue outlook, the company expects reported operating margin of approximately 22.3%, +/-180 bps, and adjusted operating margin of approximately 41.0%, +/-100 bps. The company projects adjusted EPS of $1.63, +/-$0.10, against the consensus of $1.62. Improved customer inventory levels and order momentum, across most of the markets, position the company to grow again sequentially in the fourth quarter.