Heading into the new earnings season, we look at the numbers and key takeaways for the analog semiconductors stocks in Q4, including Monolithic Power Systems (NASDAQ:MPWR) 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. 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. 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 5.55% since earnings, on average.
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 $336.5 million, up 44.3% year on year, beating analyst expectations by 4.57%. 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.
“MPS’s strong financial performance in 2021 was largely due to a 40 percent increase in fab and assembly capacity, which supported our high-value, greenfield-product, revenue ramp. Looking ahead, MPS is on track to expand capacity in 2022 well beyond $2 billion, allowing the company to successfully ramp new product revenue and achieve strategic market share gains in 2023, 2024 and beyond,” said Michael Hsing, CEO and founder of MPS.
The stock is up 6.18% since the results and currently trades at $432.19.
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 2.95% since the results and currently trades at $55.75.
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 13.8% since the results and currently trades at $49.39.
Read our full analysis of Sensata Technologies's results here.
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 $1.51 billion, flat year on year, in line with analyst expectations. It was a weaker quarter for the company, with a slow revenue growth and an underwhelming revenue guidance for the next quarter.
Skyworks Solutions had the slowest revenue growth among the peers. The stock is down 12.1% since the results and currently trades at $121.65.
Read our full, actionable report on Skyworks Solutions here, it's free.
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 decent quarter for the company, with a significant improvement in gross margin and an optimistic guidance for the next quarter.
The stock is down 12.8% since the results and currently trades at $179.
Read our full, actionable report on NXP Semiconductors here, it's free.
The author has no position in any of the stocks mentioned