WILMINGTON, Mass.–(BUSINESS WIRE)–Analog Devices, Inc. (NASDAQ: ADI) today announced that it has entered into multiple accelerated share repurchase (ASR) agreements to repurchase up to $2.5 billion of the company’s common stock. The ASR agreements will be completed under the company’s current share repurchase authorization, which has approximately $10 billion in authorization remaining. ADI is funding the repurchases under the ASR agreements from available cash.
Under the terms of the ASR agreements, ADI will receive initial deliveries of approximately 12.2 million shares on September 9, 2021, representing approximately 80% percent of the expected share repurchases under the ASR agreements, based on the company’s closing price of $163.27 on September 7, 2021. The final number of shares repurchased will be based on ADI’s volume-weighted average share price during the term of the transaction, less a discount. ADI expects that the repurchases will be completed by the second quarter of fiscal 2022.
Updated Outlook for Fourth Quarter of Fiscal 2021
For the fourth quarter of fiscal 2021, we are now forecasting revenue of $2.30 billion, +/- $70 million. ADI expects Maxim to contribute approximately $520 million of revenue to this updated outlook.
At the midpoint of this revenue outlook, we expect reported operating margin of approximately 32.5%, +/- 130 bps, and adjusted operating margin of approximately 43.1%, +/- 90 bps. We are planning for reported EPS to be $1.25, +/-$0.09, and adjusted EPS to be $1.69, +/-$0.09. This outlook assumes a diluted share count of approximately 487 million.
In the first full quarter after the combination, ADI expects its weighted average diluted share count to be approximately 530 million.
Adjusted EPS includes $0.44 of adjustments related to the net impact of acquisition related expenses, acquisition related transaction costs and restructuring related expense, net. This excludes acquisition related expenses associated with the Maxim acquisition, the impacts of which will be significant, as we cannot reasonably estimate the fair value adjustments of assets and liabilities acquired at this time.
Our fourth quarter of fiscal 2021 outlook is based on current expectations and actual results may differ materially, as a result of, among other things, the important factors discussed at the end of this release. These statements supersede all prior statements regarding our business outlook set forth in prior ADI news releases, and ADI disclaims any obligation to update these forward-looking statements.
About Analog Devices
Analog Devices, Inc. (NASDAQ: ADI) operates at the center of the modern digital economy, converting real-world phenomena into actionable insight with its comprehensive suite of analog and mixed signal, power management, radio frequency (RF), digital and sensor technologies. ADI serves 125,000 customers worldwide with more than 75,000 products in the industrial, automotive, communications, and consumer markets. ADI is headquartered in Wilmington, MA. Visit http://www.analog.com.
