Earnings results often give us a good indication what direction will the company take in the months ahead. With Q4 now behind us, let’s have a look at NXP Semiconductors (NASDAQ:NXPI) 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 15 analog semiconductors stocks we track reported a weaker Q4; on average, revenues beat analyst consensus estimates by 1.69%, while on average next quarter revenue guidance was 2.68% 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 0.1% since the previous earnings results, on average.
Best Q4: 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 8.98% year on year, in line with analyst expectations. It was a weak quarter for the company, with underwhelming revenue guidance for the next quarter and an increase in inventory levels.
“In review, 2022 was a very good year for NXP, with strong execution resulting in record revenue, solid profit growth, and healthy free cash flow generation. Additionally, we experienced unprecedented year-on-year design win traction across the entire portfolio. From an end-market perspective, our automotive business performed very well, while in our consumer IoT and mobile businesses we experienced a softening demand environment through the second half of 2022. Accordingly, we have adopted a vigilant operational stance, aiming to improve service to those customers who continue to experience material shortages while managing the distribution channel inventory levels well below our long-term targets,” said Kurt Sievers, NXP President and Chief Executive Officer.
The stock is up 1.2% since the results and currently trades at $181.63.
Read our full report on NXP Semiconductors here, it's free.
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 $855.3 million, up 1.45% year on year, missing analyst expectations by 3.1%. 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.
Vishay Intertechnology had the weakest performance against analyst estimates among its peers. The stock is down 10.4% since the results and currently trades at $21.51.
Is now the time to buy Vishay Intertechnology? Access our full analysis of the earnings results here, it's free.
Weakest Q4: 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 $61 million, down 44.7% year on year, beating analyst expectations by 2.22%. It was a weak quarter for the company, with declining revenue and underwhelming revenue guidance for the next quarter.
Magnachip had the slowest revenue growth in the group. The stock is down 15% since the results and currently trades at $8.73.
Read our full analysis of Magnachip'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 $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 0.56% since the results and currently trades at $84.09.
Read our full, actionable report on Microchip Technology here, it's free.
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 $1.01 billion, up 8.57% year on year, beating analyst expectations by 1.67%. It was a mixed quarter for the company, with underwhelming revenue guidance for the next quarter and slow revenue growth.
The stock is up 1.26% since the results and currently trades at $46.46.
Read our full, actionable report on Sensata Technologies here, it's free.
The author has no position in any of the stocks mentioned