Analog Devices Inc. (ADI) reported its fourth-quarter earnings, surpassing analyst expectations and causing the stock to rise over 6% in pre-market trading. The company posted an adjusted earnings per share (EPS) of $1.67, exceeding the estimated $1.64, though this represents a 17% decrease year-over-year. Revenue came in at $2.44 billion, beating the expected $2.40 billion but down 10% from the previous year. Gross margin declined by 230 basis points to 67.9%, and operating margin decreased by 360 basis points to 41.1%. Free cash flow was $885 million, accounting for 36% of revenue. The company noted that after a brief decline in bookings during the third quarter, orders picked up steadily throughout the fourth quarter, particularly in the automotive end market. Sequential growth was observed across all end markets, indicating that the company is past the trough and in gradual recovery. For the first quarter, ADI expects revenue between $2.25 billion and $2.45 billion (analysts estimate $2.34 billion) and adjusted EPS between $1.43 and $1.63 (analysts estimate $1.56).