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Q2 Rundown: NXP Semiconductors (NASDAQ:NXPI) Vs Other Analog Semiconductors Stocks


Jabin Bastian /
2022/09/28 3:31 am EDT
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As analog semiconductors stocks’ Q2 earnings season wraps, let's dig into this quarter’s best and worst performers, including 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 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 stocks have been hit the hardest as investors start to value profits over growth and analog semiconductors stocks have not been spared, with share prices down 11.1% since the previous earnings results, on average.

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 27.5% year on year, beating analyst expectations by 1.43%. It was a decent quarter for the company, with a significant improvement in operating margin but an increase in inventory levels.

“NXP delivered quarterly revenue of $3.31 billion, an increase of 28 percent year-on-year and above the mid-point of our guidance range. Notwithstanding the clear macro-economic cross currents, NXP continues to perform well. Customer demand within the Auto and Industrial & IoT end-markets continues to exceed our incrementally improving supply, even as we risk-adjust our long term orders.” said Kurt Sievers, NXP President and Chief Executive Officer.

NXP Semiconductors Total Revenue

The stock is down 12.9% since the results and currently trades at $151.79.

Is now the time to buy NXP Semiconductors? 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.

Monolithic Power Systems Total Revenue

The stock is down 19.2% since the results and currently trades at $373.

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 revenue guidance for both the next quarter and full year guidance missing analysts' expectations.

Sensata Technologies had the slowest revenue growth in the group. The stock is down 14.7% since the results and currently trades at $37.52.

Read our full analysis of Sensata Technologies's results here.

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 $3.1 billion, up 76.8% year on year, beating analyst expectations by 1.7%. It was a decent quarter for the company, with an exceptional revenue growth but an increase in inventory levels.

Analog Devices pulled off the fastest revenue growth among the peers. The stock is down 20.7% since the results and currently trades at $141.83.

Read our full, actionable report on Analog Devices 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 $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 9.54% since the results and currently trades at $62.66.

Read our full, actionable report on Microchip Technology here, it's free.

The author has no position in any of the stocks mentioned