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 Micron Technology (NASDAQ:MU) and the rest of the semiconductors stocks fared in Q4.
The semiconductor industry is driven by cyclical demand for advanced electronic products like smartphones, PCs, servers and data storage. While analog chips serve as the building blocks of most electronic goods and equipment, processors (CPUs) and graphics chips serve as their brains. The growth of data and technologies like artificial intelligence, 5G, Internet of Things and smart cars are creating a next wave of secular growth for the industry.
The 41 semiconductors stocks we track reported a weaker Q4; on average, revenues beat analyst consensus estimates by 1.71%, while on average next quarter revenue guidance was 0.79% under consensus. Tech stocks have been under pressure as inflation makes their long-dated profits less valuable, but semiconductors stocks held their ground better than others, with share prices down 1.52% since the previous earnings results, on average.
Micron Technology (NASDAQ:MU)
Founded in the basement of a Boise, Idaho dental office in 1978, Micron (NYSE:MU) is a leading provider of memory chips used in thousands of devices across mobile, data centers, industrial, consumer, and automotive markets.
Micron Technology reported revenues of $3.69 billion, down 52.6% year on year, missing analyst expectations by 0.37%. It was a weak quarter for the company, with declining revenue and underwhelming guidance for the next quarter.
The stock is up 6.15% since the results and currently trades at $63.
Read our full report on Micron Technology here, it's free.
Best Q4: Allegro MicroSystems (NASDAQ:ALGM)
The result of a spinoff from Sanken in Japan, Allegro MicroSystems (NASDAQ:ALGM) is a designer of power management chips and distance sensors used in electric vehicles and data centers.
Allegro MicroSystems reported revenues of $248.8 million, up 33.3% year on year, beating analyst expectations by 1.58%. It was a very strong quarter for the company, with a beat on the bottom line and a significant improvement in operating margin.
The stock is up 30.5% since the results and currently trades at $44.94.
Is now the time to buy Allegro MicroSystems? Access our full analysis of the earnings results here, it's free.
Weakest Q4: Intel (NASDAQ:INTC)
Inventor of the x86 processor that powered decades of technological innovation in PCs, data centers, and numerous other markets, Intel (NASDAQ: INTC) is the leading manufacturer of computer processors and graphics chips.
Intel reported revenues of $14 billion, down 31.6% year on year, missing analyst expectations by 3.67%. It was a weak quarter for the company, with declining revenue and underwhelming guidance for the next quarter.
Intel had the weakest performance against analyst estimates in the group. The stock is up 6.48% since the results and currently trades at $32.03.
Read our full analysis of Intel's results here.
Photronics (NASDAQ:PLAB)
Sporting a global footprint of facilities, Photronics (NASDAQ:PLAB) is a manufacturer of photomasks, templates used to transfer patterns onto semiconductor wafers.
Photronics reported revenues of $211.1 million, up 11.2% year on year, beating analyst expectations by 5.02%. It was a solid quarter for the company, with a significant improvement in gross margin.
The stock is down 14.2% since the results and currently trades at $15.47.
Read our full, actionable report on Photronics here, it's free.
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 $2.17 billion, up 23.4% year on year, in line with analyst expectations. It was a mixed quarter for the company, with a meaningful improvement in gross margin but an increase in inventory levels.
The stock is down 5.51% since the results and currently trades at $79.9.
Read our full, actionable report on Microchip Technology here, it's free.
The author has no position in any of the stocks mentioned