As we reflect back on the just completed Q1 analog semiconductors sector earnings season, we dig into the relative performance of Analog Devices (NASDAQ:ADI) and its peers.
Demand for analog chips is generally linked to the overall level of economic growth, as analog chips serve as the building blocks of most electronic goods and equipment. Unlike digital chip designers, analog chip makers tend to produce the majority of their own chips, as analog chip production does not require expensive leading edge nodes. Less dependent on major secular growth drivers, analog product cycles are much longer, often 5-7 years.
The 15 analog semiconductors stocks we track reported a slower Q1; on average, revenues beat analyst consensus estimates by 0.91%, while on average next quarter revenue guidance was 2.07% under consensus. Increasing interest rates hurt growth companies as investors search for near-term cash flows , but analog semiconductors stocks held their ground better than others, with the share prices up 6.53% since the previous earnings results, on average.
Analog Devices (NASDAQ:ADI)
Founded by two MIT graduates, Ray Stata and Matthew Lorber in 1965, Analog Devices (NASDAQ:ADI) is one of the largest providers of high performance analog integrated circuits used mainly in industrial end markets, along with communications, autos, and consumer devices.
Analog Devices reported revenues of $3.26 billion, up 9.79% year on year, beating analyst expectations by 1.77%. It was a slower quarter for the company, with underwhelming revenue guidance for the next quarter and an increase in inventory levels.
The stock is down 4.32% since the results and currently trades at $179.8.
Is now the time to buy Analog Devices? Access our full analysis of the earnings results here, it's free.
Best Q1: Vishay Intertechnology (NYSE:VSH)
Named after the founder's ancestral village in present-day Lithuania, Vishay Intertechnology (NYSE:VSH) manufactures simple chips and electronic components that are building blocks of virtually all types of electronic devices.
Vishay Intertechnology reported revenues of $871 million, up 2.02% year on year, beating analyst expectations by 2.98%. It was a very strong quarter for the company, with a beat on the bottom line and very optimistic guidance for the next quarter.
The stock is up 25.5% since the results and currently trades at $26.56.
Is now the time to buy Vishay Intertechnology? Access our full analysis of the earnings results here, it's free.
Weakest Q1: Magnachip (NYSE:MX)
With its technology found in common consumer electronics such as TVs and smartphones, Magnachip Semiconductor (NYSE:MX) is a provider of analog and mixed-signal semiconductors.
Magnachip reported revenues of $57 million, down 45.2% year on year, missing analyst expectations by 6.55%. It was a weak quarter for the company, with underwhelming revenue guidance for the next quarter and a miss of the top line analyst estimates.
Magnachip had the weakest performance against analyst estimates and slowest revenue growth in the group. The stock is up 18.7% since the results and currently trades at $10.29.
Microchip Technology (NASDAQ:MCHP)
Spun out from General Instrument in 1987, Microchip Technology (NASDAQ: MCHP) is a leading provider of microcontrollers and integrated circuits used mainly in the automotive world, especially in electric vehicles and their charging devices.
Microchip Technology reported revenues of $2.23 billion, up 21.1% year on year, in line with analyst expectations. It was a mixed quarter for the company, with strong sales guidance for the next quarter but an increase in inventory levels.
The stock is up 1.97% since the results and currently trades at $77.52.
ON Semiconductor (NASDAQ:ON)
Spun out of Motorola in 1999, and built through a series of acquisitions, ON Semiconductor (NASDAQ: ON) is a global provider of analog chips with specialization in autos, industrial applications, and power management in cloud data centers.
ON Semiconductor reported revenues of $1.96 billion, flat year on year, beating analyst expectations by 1.79%. It was a solid quarter for the company, with a beat on the bottom line and revenue guidance for the next quarter above analysts' estimates.
The stock is up 20.6% since the results and currently trades at $86.8.
The author has no position in any of the stocks mentioned