On May 22, integrated circuits maker Analog Devices (NYSE:ADI) released second-quarter earnings for the period ended May 5.
- Revenue rose slightly, profits and margins fell, and the stock dropped about 10% in afternoon trading.
- Cash from operations and free cash flow showed nice gains, however.
- Management expects third-quarter revenue between $655 million and $685 million, and diluted EPS of $0.33 to $0.37.
- In Motley Fool CAPS, the stock carries a middle-of-the-road three-star rating.
(Figures in millions, except per-share data.)
Income Statement Highlights
|
Q2 2007 |
Q2 2006 |
Change | |
|---|---|---|---|
|
Sales |
$669.1 |
$643.9 |
3.9% |
|
Net Profit |
$125.4 |
$145.8 |
(14.0%) |
|
EPS |
$0.37 |
$0.39 |
(5.1%) |
|
Diluted Shares |
338.8 |
376.8 |
(10.1%) |
Get back to basics with the income statement.
Margin Checkup
|
Q2 2007 |
Q2 2006 |
Change* | |
|---|---|---|---|
|
Gross Margin |
57.0% |
59.1% |
(2.1) |
|
Operating Margin |
19.7% |
23.5% |
(3.8) |
|
Net Margin |
18.7% |
22.7% |
(3.9) |
Margins are the earnings engine.
Balance Sheet Highlights
|
Assets |
Q2 2007 |
Q2 2006 |
Change |
|---|---|---|---|
|
Cash + ST Invest. |
$1,794.7 |
$2,692.8 |
(33.4%) |
|
Accounts Rec. |
$332.1 |
$357.9 |
(7.2%) |
|
Inventory |
$382.2 |
$359.4 |
6.3% |
|
Liabilities |
Q2 2007 |
Q2 2006 |
Change |
|---|---|---|---|
|
Accounts Payable |
$138.7 |
$144.8 |
(4.2%) |
|
Long-Term Debt |
$0.0 |
$0.0 |
N/A |
The balance sheet reflects the company's health.
Cash Flow Highlights
|
YTD 2007 |
YTD 2006 |
Change | |
|---|---|---|---|
|
Cash From Ops. |
$446.8 |
$380.4 |
17.5% |
|
Capital Expenditures |
$77.4 |
$49.2 |
57.3% |
|
Free Cash Flow |
$369.4 |
$331.2 |
11.5% |
Free cash flow is a Fool's best friend.
Related Foolishness:
- Foolish Forecast: Analog Devices Cuts Through the Static
- National Semiconductor's Gross Improvement
- Foolish Forecast: Tackling Texas Instruments
Fool by Numbers is designed to give you the raw earnings information in a timely fashion, putting all the numbers you need in one easy-to-read place. But at The Motley Fool, we believe numbers tell only part of the story, so check Fool.com for more of our in-depth discussion of what the numbers mean. This data has been provided by Netscribes. To provide feedback on this article, please click on the "feedback" button below.