Wrapping up Q4 earnings, we look at the numbers and key takeaways for the semiconductor manufacturing stocks, including Entegris (NASDAQ:ENTG) and its peers.
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 slower Q4; on average, revenues beat analyst consensus estimates by 2.62%, while on average next quarter revenue guidance was 3.47% above consensus. Tech stocks have been hit the hardest as investors start to value profits over growth, but semiconductor manufacturing stocks held their ground better than others, with share prices down 2.77% since the previous earnings results, on average.
With fabs representing the company’s largest customer type, Entegris (NASDAQ:ENTG) supplies products that purify, protect, and generally ensure the integrity of raw materials needed for advanced semiconductor manufacturing.
Entegris reported revenues of $946.1 million, up 48.9% year on year, missing analyst expectations by 0.43%. It was a weak quarter for the company, with underwhelming revenue guidance for the next quarter and an increase in inventory levels.
Bertrand Loy, Entegris’ president and chief executive officer, said: “Our solid fourth quarter results capped off a strong year for Entegris. Sales (proforma) grew 13 percent in 2022, several points higher than estimated industry growth. This above-market growth was driven in large part by our strong position at the leading-edge technology nodes.”
Entegris scored the fastest revenue growth but had the weakest performance against analyst estimates of the whole group. The stock is down 8.07% since the results and currently trades at $78.1.
Read our full report on Entegris here, it's free.
Best Q4: Nova (NASDAQ:NVMI)
Headquartered in Israel, Nova (NASDAQ: NVMI) is a provider of quality control systems used in semiconductor manufacturing.
Nova reported revenues of $151.2 million, up 24.5% year on year, beating analyst expectations by 2.31%. It was a strong quarter for the company, with very optimistic guidance for the next quarter and a significant improvement in inventory levels.
The stock is up 12.9% since the results and currently trades at $103.
Is now the time to buy Nova ? Access our full analysis of the earnings results here, it's free.
Weakest Q4: Marvell Technology (NASDAQ:MRVL)
Moving away from a low margin storage device management chips in one of the biggest semiconductor business model pivots of the past decade, Marvell Technology (NASDAQ: MRVL) is a fabless designer of special purpose data processing and networking chips used by data centers, communications carriers, enterprises, and autos.
Marvell Technology reported revenues of $1.42 billion, up 5.62% year on year, in line with analyst expectations. It was a weak quarter for the company, with underwhelming revenue guidance for the next quarter and a decline in operating margin.
The stock is down 9.7% since the results and currently trades at $41.7.
Read our full analysis of Marvell Technology's results here.
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 $21.6 million, down 21.1% year on year, in line with analyst expectations. It was a weak quarter for the company, with declining revenue and operating margin.
The stock is down 10.1% since the results and currently trades at $9.64.
Read our full, actionable report on Amtech here, it's free.
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 $333.5 million, down 8.49% year on year, beating analyst expectations by 4.95%. It was a weak quarter for the company, with declining revenue and underwhelming guidance for the next quarter.
The stock is up 7.43% since the results and currently trades at $120.95.
Read our full, actionable report on IPG Photonics here, it's free.
The author has no position in any of the stocks mentioned