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Unpacking Q4 Earning: Analog Devices (NASDAQ:ADI) In The Context Of Other Analog Semiconductors Stocks


Adam Hejl /
2022/03/25 7:04 am EDT
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Wrapping up Q4 earnings, we look at the numbers and key takeaways for the analog semiconductors stocks, including 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 10 analog semiconductors stocks we track reported a solid Q4; on average, revenues beat analyst consensus estimates by 2.96%, while on average next quarter revenue guidance was 4.79% above consensus. The technology sell-off has been putting pressure on stocks since November, but analog semiconductors stocks held their ground better than others, with the share price up 2.78% since earnings, 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 $2.68 billion, up 72.2% year on year, beating analyst expectations by 2.87%. It was a very strong quarter for the company, with a significant improvement in inventory levels and a beat on the bottom line.

“ADI delivered its fourth consecutive quarter of record revenue with momentum across all end markets and geographies. The growing demand for our solutions and our commitment to operational excellence enabled adjusted gross margin, operating margin and EPS to achieve new highs,” said Vincent Roche, President and CEO.

Analog Devices Total Revenue

Analog Devices achieved the fastest revenue growth of the whole group. The stock is up 1.41% since the results and currently trades at $164.31.

Is now the time to buy Analog Devices? Access our full analysis of the earnings results here, it's free.

Best Q4: 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 $1.84 billion, up 27.6% year on year, beating analyst expectations by 3.08%. It was an impressive quarter for the company, with a significant improvement in gross margin and a solid beat on the bottom line.

ON Semiconductor Total Revenue

The stock is up 11.4% since the results and currently trades at $64.

Is now the time to buy ON Semiconductor? Access our full analysis of the earnings results here, it's free.

Weakest Q4: Sensata Technologies (NYSE:ST)

Originally a temperature sensor control maker and part of Texas Instruments for 60 years, before eventually being spun out, Sensata Technology Holdings (NYSE: ST) is a leading supplier of analog sensors used in industrial and transportation applications, best known for its dominant position in the tire pressure monitoring systems in cars.

Sensata Technologies reported revenues of $934.5 million, up 3.1% year on year, beating analyst expectations by 1.73%. It was a weaker quarter for the company, with an underwhelming revenue guidance for the next quarter and a slow revenue growth.

The stock is down 10.8% since the results and currently trades at $51.10.

Read our full analysis of Sensata Technologies's results here.

Skyworks Solutions (NASDAQ:SWKS)

Result of a merger of Alpha Industries and the wireless communications division of Conexant, Skyworks Solutions (NASDAQ: SWKS) is a designer and manufacturer of chips used in smartphones, autos, and industrial applications to amplify, filter, and process wireless signals.

Skyworks Solutions reported revenues of $1.51 billion, flat 0.02% year on year, in line with analyst expectations. It was an ok quarter for the company, with slow top-line growth and revenue guidance for the next quarter roughly in line with analysts' expectations.

The stock is down 0.1% since the results and currently trades at $138.39.

Read our full, actionable report on Skyworks Solutions here, it's free.

Texas Instruments (NASDAQ:TXN)

Headquartered in Dallas, Texas since the 1950s, Texas Instruments (NASDAQ: TXN) is the world’s largest producer of analog semiconductors.

Texas Instruments reported revenues of $4.83 billion, up 18.5% year on year, beating analyst expectations by 9.05%. It was a very strong quarter for the company, with an impressive beat of analyst estimates and significant improvement in gross margin.

Texas Instruments delivered the strongest analyst estimates beat among the peers. The stock is up 5.75% since the results and currently trades at $184.21.

Read our full, actionable report on Texas Instruments here, it's free.

The author has no position in any of the stocks mentioned