Unpacking Q2 Earnings: MACOM Technology (NASDAQ:MTSI) In The Context Of Other Analog Semiconductors Stocks
Jabin Bastian 2022/10/07 3:25 am EDT
As we reflect back on the just completed Q2 analog semiconductors sector earnings season, we dig into the relative performance of MACOM Technology (NASDAQ:MTSI) 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 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 multiples have reverted to the historical mean after reaching all time levels in early 2021 and while some of the analog semiconductors stocks have fared somewhat better than others, they have not been spared, with share prices declining 6.78% since the previous earnings results, on average.
MACOM Technology (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 Technology reported revenues of $172.2 million, up 12.8% year on year, beating analyst expectations by 1.3%. It was a decent quarter for the company, with a significant improvement in operating margin but an increase in inventory levels.
The stock is up 6.93% since the results and currently trades at $58.28.
Is now the time to buy MACOM Technology? Access our full analysis of the earnings results here, it's free.
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.
The stock is down 14.6% since the results and currently trades at $394.01.
Is now the time to buy Monolithic Power Systems? 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.
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 $1.96 billion, up 25.1% year on year, in line with analyst expectations. It was a solid quarter for the company, with a very optimistic guidance for the next quarter.
The stock is down 2.78% since the results and currently trades at $67.34.
Read our full, actionable report on Microchip Technology here, it's free.
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 $5.21 billion, up 13.7% year on year, beating analyst expectations by 12.1%. It was a solid quarter for the company, with an impressive beat of analyst estimates.
Texas Instruments pulled off the strongest analyst estimates beat among the peers. The stock is up 4.76% since the results and currently trades at $168.50.
Read our full, actionable report on Texas Instruments here, it's free.
The author has no position in any of the stocks mentioned