Analog Devices Stock Surges After Strong Earnings and $10 Billion Buyback Announcement

The chipmaker beat first-quarter expectations, raised its dividend, and projected a return to growth in fiscal 2025.

Analog Devices reported first-quarter revenue of $2.42 billion, surpassing analysts' estimates of $2.36 billion, despite a 4% year-over-year decline.
Adjusted earnings per share came in at $1.63, exceeding Wall Street expectations of $1.54.
The company authorized an additional $10 billion in share repurchases, bringing its total buyback authorization to $11.5 billion, and raised its quarterly dividend by 8% to 99 cents per share.
Strength in industrial and automotive segments, along with recovering chip demand, positions the company for sequential and year-over-year growth starting in the second quarter.
Analog Devices projects second-quarter revenue of $2.5 billion, plus or minus $100 million, and adjusted earnings per share of $1.68, both above analyst consensus estimates.