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Analog Semiconductors Stocks Q2 Earnings Review: Monolithic Power Systems (NASDAQ:MPWR) Shines


Radek Strnad /
2022/10/05 3:17 am EDT
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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 Q2, starting with Monolithic Power Systems (NASDAQ:MPWR).

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. Tech stocks have been hit the hardest as investors start to value profits over growth and while some of the analog semiconductors stocks have fared somewhat better than others, they have not been spared, with share prices declining 6.75% since the previous earnings results, on average.

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.

“We are continuing to execute on our growth strategies, including expansion and diversification of our R&D centers and manufacturing partnerships in multiple countries,” said Michael Hsing, CEO and founder of MPS.

Monolithic Power Systems Total Revenue

The stock is down 14.6% since the results and currently trades at $394.01.

Read why we think that Monolithic Power Systems is one of the best analog semiconductors stocks, our full report is 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.

ON Semiconductor Total Revenue

The stock is up 2.6% since the results and currently trades at $68.52.

Is now the time to buy ON Semiconductor? 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 8.7% since the results and currently trades at $40.16.

Read our full analysis of Sensata Technologies's results here.

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 $3.31 billion, up 27.5% year on year, beating analyst expectations by 1.43%. It was a decent quarter for the company, with a significant improvement in operating margin but an increase in inventory levels.

The stock is down 8.66% since the results and currently trades at $159.22.

Read our full, actionable report on NXP Semiconductors here, it's free.

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 scored the fastest revenue growth among the peers. The stock is down 15.7% since the results and currently trades at $150.85.

Read our full, actionable report on Analog Devices here, it's free.

The author has no position in any of the stocks mentioned