The end of an earnings season can be a great time to assess how companies are handling the current business environment and discover new stocks. Let’s have a look at how MACOM (NASDAQ:MTSI) and the rest of the analog semiconductors stocks fared in Q1.
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 15 analog semiconductors stocks we track reported a slower Q1; on average, revenues beat analyst consensus estimates by 0.91%, while on average next quarter revenue guidance was 2.07% under consensus. Tech stocks have been hit the hardest as investors start to value profits over growth, but analog semiconductors stocks held their ground better than others, with the share prices up 4.22% since the previous earnings results, on average.
MACOM (NASDAQ:MTSI)
Founded in the 1950s as Microwave Associates, a communications supplier to the US Army Signal Corp, today MACOM Technology Solutions (NASDAQ: MTSI) is a provider of analog chips used in optical, wireless, and satellite networks.
MACOM reported revenues of $169.4 million, up 2.58% year on year, in line with analyst expectations. It was a slower quarter for the company, with underwhelming revenue guidance for the next quarter and an increase in inventory levels.
“While we were generally pleased with our first half results, we expect that the second half will be more challenging,” said Stephen G. Daly, President and Chief Executive Officer.
The stock is up 3.86% since the results and currently trades at $59.16.
Read our full report on MACOM here, it's free.
Best Q1: 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 $3.26 billion, up 9.79% year on year, beating analyst expectations by 1.77%. It was a mixed quarter for the company, with underwhelming revenue guidance for the next quarter and a beat of top and bottom line estimates.
The stock is down 7.17% since the results and currently trades at $174.45.
Is now the time to buy Analog Devices? Access our full analysis of the earnings results here, it's free.
Weakest Q1: Magnachip (NYSE:MX)
With its technology found in common consumer electronics such as TVs and smartphones, Magnachip Semiconductor (NYSE:MX) is a provider of analog and mixed-signal semiconductors.
Magnachip reported revenues of $57 million, down 45.2% year on year, missing analyst expectations by 6.55%. It was a weak quarter for the company, with underwhelming revenue guidance for the next quarter and a miss of the top line analyst estimates.
Magnachip had the weakest performance against analyst estimates and slowest revenue growth in the group. The stock is up 18.8% since the results and currently trades at $10.3.
Read our full analysis of Magnachip's results here.
Vishay Intertechnology (NYSE:VSH)
Named after the founder's ancestral village in present-day Lithuania, Vishay Intertechnology (NYSE:VSH) manufactures simple chips and electronic components that are building blocks of virtually all types of electronic devices.
Vishay Intertechnology reported revenues of $871 million, up 2.02% year on year, beating analyst expectations by 2.98%. It was a very strong quarter for the company, with a beat on the bottom line.
The stock is up 22.3% since the results and currently trades at $25.87.
Read our full, actionable report on Vishay Intertechnology 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 $3.12 billion, down 0.48% year on year, beating analyst expectations by 3.95%. It was a decent quarter for the company, with very optimistic guidance for the next quarter but an increase in inventory levels.
The stock is up 6.48% since the results and currently trades at $176.75.
Read our full, actionable report on NXP Semiconductors here, it's free.
The author has no position in any of the stocks mentioned