BlackRock, Inc., the world’s largest asset manager, has reported a highly successful third quarter for 2024, marked by strong financial growth. The firm’s total assets under management (AUM) surged to a record $11.5 trillion, driven by $221 billion in net inflows during the quarter. This represents a significant year-over-year increase of $2.4 trillion in AUM, showcasing BlackRock's continued leadership in the asset management industry.
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Analog Devices Reports Q3 FY24 Financial Results: Revenue Exceeds Midpoint
Analog Devices, Inc. (Nasdaq: ADI), a global leader in the semiconductor industry, announced its fiscal third-quarter 2024 financial results on August 21, 2024. Despite ongoing economic and geopolitical uncertainties, the company exceeded its revenue midpoint projections, positioning itself well for continued growth as the market gradually recovers.
Strong Revenue and Cash Flow Performance
Key Financial Highlights for Q3 FY24:
- Revenue: $2.31 billion, surpassing the midpoint of the company’s guidance.
- Operating Cash Flow: $4.0 billion on a trailing twelve-month basis.
- Free Cash Flow: $2.9 billion on a trailing twelve-month basis.
- Shareholder Returns: ADI returned $574 million to shareholders through dividends and stock repurchases during Q3 FY24.
Vincent Roche, CEO and Chair of Analog Devices, expressed optimism about the company’s performance, highlighting stronger profitability and earnings per share that approached the high end of ADI’s outlook. He noted that the company's high-performance analog solutions are well-aligned with emerging secular trends, positioning Analog Devices for long-term success.
Financial Performance Metrics
Q3 Results vs. Prior Year:
- Revenue: $2.31 billion, down 25% from $3.08 billion in Q3 FY23.
- Gross Margin: 56.7%, down from 63.8%.
- Operating Income: $491 million, a 47% decline from $929 million in the same quarter last year.
- Diluted EPS: $0.79, down 55% from $1.74 in Q3 FY23.
While the company experienced declines in revenue and profitability compared to last year, ADI performed above expectations in several areas, driven by improvements in customer inventory levels and order momentum across various markets.
Adjusted Financial Metrics (Non-GAAP):
- Adjusted Gross Margin: 67.9%, down from 72.2%.
- Adjusted Operating Income: $952 million, a 35% decline.
- Adjusted Diluted EPS: $1.58, down from $2.49 in Q3 FY23.
Cash Flow and Shareholder Returns
Analog Devices demonstrated strong cash flow performance during Q3 FY24, with $855 million in net cash provided by operating activities. The company maintained robust free cash flow of $701 million, representing 30% of revenue. Over the past twelve months, ADI has returned a total of $2.76 billion to shareholders through dividends and stock repurchases, reaffirming its commitment to delivering shareholder value.
Outlook for Q4 FY24
Looking ahead to the fourth quarter of fiscal 2024, Analog Devices forecasts continued growth with expected revenue of $2.40 billion, +/- $100 million. The company projects:
- Operating Margin: Approximately 22.3% (+/- 180 basis points).
- Adjusted Operating Margin: Around 41.0% (+/- 100 basis points).
- Reported EPS: Expected at $0.85, +/- $0.10.
- Adjusted EPS: Forecasted at $1.63, +/- $0.10.
CFO Richard Puccio noted that improved customer inventory levels and order momentum signal a recovery across most markets. However, ADI remains cautious due to ongoing economic and geopolitical uncertainty, which may impact the pace of the recovery.
Source: ADI
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