ADI reported a solid third quarter in 2024, delivering revenue of $2.312 billion and generating meaningful free cash flow despite YoY revenue softness. The company posted gross profit of $1.311 billion and a gross margin of 56.7%, with operating income of $491.3 million and net income of $392.2 million, translating to an EPS of $0.79. YoY revenue declined 7.98%, but sequential QoQ revenue rose 7.09%, reflecting a modest QoQ upturn for a seasonally sensitive business landscape. Free cash flow reached $701.1 million, supported by $855.0 million in cash flow from operations and modest capital expenditures of $153.9 million; dividends paid were $456.5 million and share buybacks were about $118.0 million, underscoring a focus on capital returns even as revenue cycles shift.
The balance sheet remains robust: cash and cash equivalents plus short-term investments totaled approximately $2.45 billion, total assets are about $48.6 billion, and total liabilities stand around $13.4 billion with stockholders’ equity near $35.2 billion. Net debt stood at roughly $5.996 billion after considering cash generation and financing activity. Leverage remains modest by historical standards (long-term debt of about $6.66 billion; debt to capitalization around 18.7%), and interest coverage sits at ~5.8x. However, the company carries a very large goodwill and intangible asset base (approximately $36.9 billion collectively), which can pose impairment risk if demand weakens or if market conditions deteriorate.
Management commentary (as available in the provided data) is limited for forward-looking guidance, with no explicit QQ3 2024 outlook disclosed in the supplied content. Nevertheless, the results confirm ADI’s ability to translate a challenging revenue backdrop into earnings power and free cash flow, reinforcing the company’s strategic position in analog, mixed-signal, and data-converter solutions across automotive, industrial, and communications end-markets. Investors should monitor demand momentum in core end-markets, supply chain dynamics, and ongoing capital allocation decisions as drivers of longer-term value.