The end of the earnings season is always a good time to take a step back and see who shined (and who not so much). Let’s have a look at how the analog semiconductors stocks have fared in Q4, 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. 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 strong Q4; on average, revenues beat analyst consensus estimates by 2.68%, while on average next quarter revenue guidance was 4.03% above consensus. The whole tech sector has been facing a sell-off since late last year and while some of the analog semiconductors stocks have fared somewhat better, they have not been spared, with share price declining 10.1% 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 $1.75 billion, up 29.9% year on year, in line with analyst expectations. It was a solid quarter for the company, with a meaningful improvement in operating margin and guidance for the next quarter above analysts' estimates.
"Our December quarter results continued to be strong, with revenue growing 6.5% sequentially and 30.0% year-over-year despite ongoing manufacturing capacity constraints," said Ganesh Moorthy, President and Chief Executive Officer.
The stock is down 12% since the results and currently trades at $65.25.
Is now the time to buy Microchip Technology? 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 beat on the bottom line.
The stock is down 7.71% since the results and currently trades at $53.02.
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 17.3% since the results and currently trades at $47.39.
NXP Semiconductors (NASDAQ:NXPI)
Spun off from Dutch electronics giant Philips in 2006, NXP Semiconductors (NASDAQ: NXPI) is a designer and manufacturer of chips used in autos, industrial manufacturing, mobile devices, and communications infrastructure.
NXP Semiconductors reported revenues of $3.03 billion, up 21.2% year on year, beating analyst expectations by 1.19%. It was a very strong quarter for the company, with a significant improvement in gross margin and revenue guidance for the next quarter exceeding analysts' expectations.
The stock is down 17.2% since the results and currently trades at $170.
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.
Texas Instruments achieved the strongest analyst estimates beat among the peers. The stock is down 0.39% since the results and currently trades at $173.50.
The author has no position in any of the stocks mentioned