Benzinga | Aug 18, 2021 12:17PM EDT

Analog Devices Q3 Result Surpass Consensus, Notes Margin Expansion, Declares Dividend

* Analog Devices Inc (NASDAQ:ADI) reported third-quarter FY21 revenue growth of 21% year-on-year to $1.76 billion beating the analyst consensus of $1.71 billion.

* HPC and Automotive drove Apple Inc (NASDAQ:AAPL) supplier Taiwan Semiconductor Manufacturing Co Ltd's (NYSE:TSM) Q2 sales of $13.29 billion, beating the analyst consensus of $13.17 billion.

* End Markets: Analog Devices' Industrial revenue grew 29% Y/Y to $1 billion.

* Automotive revenue increased 80% Y/Y to $290 million.

* Consumer revenue rose 16% Y/Y to $178.2 million.

* Communications revenue declined 21% Y/Y to $288.7 million.

* Margins: The adjusted gross margin expanded 170 bps to 71.6%.

* The adjusted operating margin grew 130 bps to 43.6%.

* Analog Devices held $1.5 billion in cash and equivalents. It generated $630 million in operating cash flow during the quarter.

* Adjusted EPS of $1.72 beat the analyst consensus of $1.62.

* The board declared a quarterly cash dividend of $0.69 per share, payable on September 8, 2021, to shareholders of record on August 27, 2021.

* Analog Devices returned over $400 million to shareholders via dividends and share repurchases.

* Outlook: Analog Devices sees Q4 revenue of $1.71 billion - $1.85 billion versus the analyst consensus of $1.75 billion.

* The company sees adjusted EPS of $1.61 - $1.83 against the consensus of $1.69.

* Price Action: ADI shares traded higher by 0.27% at $166.7 on the last check Wednesday.