8629

Q1 Earnings Highlights: Microchip Technology (NASDAQ:MCHP) Vs The Rest Of The Analog Semiconductors Stocks


Jabin Bastian /
2022/07/08 3:44 am EDT
Add to Watchlist

Looking back on analog semiconductors stocks' Q1 earnings, we examine this quarters’ best and worst performers, including Microchip Technology (NASDAQ:MCHP) 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. The biggest secular growth drivers currently are the adoption of electric vehicles, 5G networks and Internet of Things connectivity, and demand for chips that reduce power consumption. 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 Q1; on average, revenues beat analyst consensus estimates by 2.31%, while on average next quarter revenue guidance was 1.65% above consensus. There has been a stampede out of high valuation technology stocks, but analog semiconductors stocks held their ground better than others, with share price down 9.92% since earnings, 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 $1.84 billion, up 25.7% year on year, beating analyst expectations by 1.4%. It was a strong quarter for the company, with a beat on the bottom line and a very optimistic guidance for the next quarter.

"We delivered yet another quarter of strong growth and profitability during the March quarter and closed out a record fiscal year 2022 with outstanding revenue growth of 25.7% compared to the prior year's fourth fiscal quarter. Our March quarter results came in near the high end of our guidance range, and we achieved new records across key operating non-GAAP metrics," said Ganesh Moorthy, President and Chief Executive Officer.

Microchip Technology Total Revenue

The stock is down 11.9% since the results and currently trades at $56.73.

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

Best Q1: 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 $377.7 million, up 48.4% year on year, beating analyst expectations by 4.8%. It was a very strong quarter for the company, with a beat on the bottom line and a very optimistic guidance for the next quarter.

Monolithic Power Systems Total Revenue

The stock is down 2.95% since the results and currently trades at $399.06.

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

Weakest Q1: 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 $1.33 billion, up 13.9% year on year, in line with analyst expectations. It was a weak quarter for the company, with an underwhelming revenue guidance for the next quarter and an increase in inventory levels.

Skyworks Solutions had the weakest performance against analyst estimates in the group. The stock is down 17.6% since the results and currently trades at $98.23.

Read our full analysis of Skyworks Solutions's results here.

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 $4.9 billion, up 14.3% year on year, beating analyst expectations by 3.62%. It was a weak quarter for the company, with an underwhelming revenue guidance for the next quarter and an increase in inventory levels.

The stock is down 8.45% since the results and currently trades at $154.22.

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

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 $975.7 million, up 3.52% year on year, beating analyst expectations by 1.57%. It was a slower quarter for the company, with an underwhelming revenue guidance for the next quarter and a slow revenue growth.

Sensata Technologies had the slowest revenue growth among the peers. The stock is down 13.6% since the results and currently trades at $42.07.

Read our full, actionable report on Sensata Technologies here, it's free.

The author has no position in any of the stocks mentioned