Revenue grew 9.7% to $1.6 billion, primarily benefited from continued high demand for its products across B2B markets. For the fourth quarter, B2B sales are projected to increase low double digits year-over-year.
For the fourth quarter, the company predicts revenue of about $1.57 billion and EPS of about $1.07. Gross margin is anticipated to be about 68% and operating margin is projected to be 32% to 33%. Operating expenses are expected to be about $566 million for the fourth quarter.
“Our continued strong growth and profitability allowed us to achieve our leverage target three quarters ahead of our plan, and reinstate our share repurchase program as we enter the fourth quarter,” said Vincent Roche, President and CEO of Analog Devices.
In a separate release, Analog Devices said it has reinstated its share repurchase program and that its Board of Directors has authorized the company to purchase an additional $2 billion of its common stock.
The board of directors has also declared a quarterly cash dividend of $0.48 per outstanding share of common stock. The dividend is payable on September 12, 2018, to all shareholders of record on August 31, 2018.
The stock had risen over 23% in the past year and more than 7% year-to-date.