As the craze of earnings season draws to a close, here's a look back at some of the most exciting (and some less so) results from Q2. Today we are looking at the analog semiconductors stocks, starting with Microchip Technology (NASDAQ:MCHP).
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 9 analog semiconductors stocks we track reported a decent Q2; on average, revenues beat analyst consensus estimates by 3.31%, while on average next quarter revenue guidance was 1.83% above consensus. Investors abandoned cash burning companies since high interest rates will make it harder to raise capital and analog semiconductors stocks have not been spared, with share prices down 14.4% since the previous earnings results, on average.
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 $1.96 billion, up 25.1% year on year, in line with analyst expectations. It was a solid quarter for the company, with very optimistic guidance for the next quarter and a meaningful improvement in gross margin.
"We kicked off our fiscal 2023 on a strong note, delivering record revenue of $1.96 billion which exceeded the mid-point of our guidance range and marked the seventh consecutive quarter of record revenue," said Ganesh Moorthy, President and Chief Executive Officer.
The stock is down 11.6% since the results and currently trades at $61.22.
Is now the time to buy Microchip Technology? Access our full analysis of the earnings results here, it's free.
Best Q2: Monolithic Power Systems (NASDAQ:MPWR)
Founded in 1997 by its longtime CEO Michael Hsing, Monolithic Power Systems (NASDAQ: MPWR) is an analog and mixed signal chipmaker that specializes in power management chips meant to minimize total energy consumption.
Monolithic Power Systems reported revenues of $461 million, up 57.1% year on year, beating analyst expectations by 7.06%. It was an exceptional quarter for the company, with a beat on the bottom line and a significant improvement in operating margin.
The stock is down 27.6% since the results and currently trades at $333.99.
Is now the time to buy Monolithic Power Systems? Access our full analysis of the earnings results here, it's free.
Weakest Q2: 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 $1.02 billion, up 2.8% year on year, beating analyst expectations by 1.51%. It was a weak quarter for the company, with a full year guidance missing analysts' expectations.
Sensata Technologies had the slowest revenue growth in the group. The stock is down 10.4% since the results and currently trades at $39.38.
Read our full analysis of Sensata Technologies's results here.
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 $3.1 billion, up 76.8% year on year, beating analyst expectations by 1.7%. It was a decent quarter for the company, with exceptional revenue growth but an increase in inventory levels.
Analog Devices pulled off the fastest revenue growth among the peers. The stock is down 19.8% since the results and currently trades at $143.46.
Read our full, actionable report on Analog Devices here, it's free.
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 $2.08 billion, up 24.8% year on year, beating analyst expectations by 3.5%. It was an impressive quarter for the company, with a significant improvement in gross margin.
The stock is down 8.35% since the results and currently trades at $61.20.
Read our full, actionable report on ON Semiconductor here, it's free.
The author has no position in any of the stocks mentioned