The end of an earnings season can be a great time to assess how companies are handling the current business environment and discover new stocks. Let’s have a look at how Amkor (NASDAQ:AMKR) and the rest of the semiconductor manufacturing stocks fared in Q1.
The semiconductor industry is driven by demand for advanced electronic products like smartphones, PCs, servers and data storage. The growth of data and technologies like artificial intelligence, 5G networks and smart cars are also creating a next wave of growth for the industry. To keep up with ever changing customer needs requires new tools that can design, fabricate and test at ever smaller sizes and more complex architectures, and that is driving the demand for semiconductor capital manufacturing equipment.
The 14 semiconductor manufacturing stocks we track reported a mixed Q1; on average, revenues beat analyst consensus estimates by 3.16%, while on average next quarter revenue guidance was 1.49% under consensus. Investors abandoned cash burning companies since high interest rates will make it harder to raise capital , but semiconductor manufacturing stocks held their ground better than others, with the share prices up 21.8% since the previous earnings results, on average.
Amkor (NASDAQ:AMKR)
Operating through a largely Asian facility footprint, Amkor Technologies (NASDAQ:AMKR) provides outsourced packaging and testing for semiconductors.
Amkor reported revenues of $1.47 billion, down 7.85% year on year, beating analyst expectations by 1.4%. It was a weaker quarter for the company, with underwhelming revenue guidance for the next quarter and a decline in gross margin.
“Amkor delivered revenue and profitability above the midpoint of guidance. Revenue in the Automotive and Industrial end market grew 14% year-on-year, and revenue in the Communications end market grew 2% year-on-year, reflecting our strong leadership in Advanced packaging,” said Giel Rutten, Amkor’s president and chief executive officer.
The stock is up 28.2% since the results and currently trades at $28.71.
Read our full report on Amkor here, it's free.
Best Q1: Photronics (NASDAQ:PLAB)
Sporting a global footprint of facilities, Photronics (NASDAQ:PLAB) is a manufacturer of photomasks, templates used to transfer patterns onto semiconductor wafers.
Photronics reported revenues of $229.3 million, up 12.1% year on year, beating analyst expectations by 8.68%. It was an exceptional quarter for the company, with a significant improvement in gross margin and strong revenue guidance for the next quarter.
Photronics scored the strongest analyst estimates beat among its peers. The stock is up 40.1% since the results and currently trades at $24.12.
Is now the time to buy Photronics? Access our full analysis of the earnings results here, it's free.
Weakest Q1: IPG Photonics (NASDAQ:IPGP)
Both a designer and manufacturer of most of its products, IPG Photonics (NASDAQ:IPGP) is a provider of high-performance fiber lasers that are used for cutting, welding and processing raw materials.
IPG Photonics reported revenues of $347.2 million, down 6.16% year on year, beating analyst expectations by 5.01%. It was a weak quarter for the company, with underwhelming revenue guidance for the next quarter and an increase in inventory levels.
The stock is up 9.27% since the results and currently trades at $128.96.
Read our full analysis of IPG Photonics's results here.
Applied Materials (NASDAQ:AMAT)
Founded in 1967 as the first company that built the tools for other companies to use to make semiconductors, Applied Materials (NASDAQ:AMAT) is the largest provider of semiconductor wafer fabrication equipment.
Applied Materials reported revenues of $6.63 billion, up 6.16% year on year, beating analyst expectations by 4.07%. It was a very strong quarter for the company, with a beat on the bottom line.
The stock is up 11.1% since the results and currently trades at $144.4.
Read our full, actionable report on Applied Materials here, it's free.
Amtech (NASDAQ:ASYS)
Focusing on Silicon Carbide and Power Semiconductor sectors, Amtech Systems (NASDAQ:ASYS) produces machinery and related chemicals needed for manufacturing semiconductors.
Amtech reported revenues of $33.3 million, up 24.8% year on year, beating analyst expectations by 8.33%. It was a mixed quarter for the company, with a significant improvement in inventory levels but underwhelming revenue guidance for the next quarter.
The stock is up 5.44% since the results and currently trades at $9.3.
Read our full, actionable report on Amtech here, it's free.
The author has no position in any of the stocks mentioned