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Spotting Winners: NXP Semiconductors (NASDAQ:NXPI) And Analog Semiconductors Stocks In Q1


Jabin Bastian /
2022/06/22 4:17 am EDT
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As analog semiconductors stocks’ Q1 earnings season wraps, let's dig into this quarters’ 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. The biggest secular growth drivers currently are the adoption of electric vehicles, 5G networks and Internet of Things connectivity, and demand for chips that reduce power consumption. 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 Q1; on average, revenues beat analyst consensus estimates by 2.3%, while on average next quarter revenue guidance was 1.65% above consensus. Tech stocks have been under pressure since the end of last year and while some of the analog semiconductors stocks have fared somewhat better, they have not been spared, with share price declining 10.3% since earnings, 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 $3.13 billion, up 22.1% year on year, beating analyst expectations by 1.04%. It was a solid quarter for the company, with a significant improvement in operating margin and guidance for the next quarter above analysts' estimates.

“NXP delivered record quarterly revenue of $3.14 billion, an increase of 22 percent year-on-year and above the mid-point of our guidance range. The strong growth we have anticipated for 2022 is materializing. We continue to see robust customer demand, especially our company-specific accelerated growth drivers. Overall, demand continues to outstrip increased supply, and inventory across all end markets remains very lean,” said Kurt Sievers, NXP President and Chief Executive Officer.

NXP Semiconductors Total Revenue

The stock is down 11.7% since the results and currently trades at $156.15.

Is now the time to buy NXP Semiconductors? Access our full analysis of the earnings results here, it's free.

Best Q1: 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 $377.7 million, up 48.4% year on year, beating analyst expectations by 4.8%. It was a very strong quarter for the company, with a beat on the bottom line and a very optimistic guidance for the next quarter.

Monolithic Power Systems Total Revenue

The stock is down 0.78% since the results and currently trades at $408.

Is now the time to buy Monolithic Power Systems? Access our full analysis of the earnings results here, it's free.

Weakest Q1: Skyworks Solutions (NASDAQ:SWKS)

Result of a merger of Alpha Industries and the wireless communications division of Conexant, Skyworks Solutions (NASDAQ: SWKS) is a designer and manufacturer of chips used in smartphones, autos, and industrial applications to amplify, filter, and process wireless signals.

Skyworks Solutions reported revenues of $1.33 billion, up 13.9% year on year, in line with analyst expectations. It was a weak quarter for the company, with an underwhelming revenue guidance for the next quarter and an increase in inventory levels.

Skyworks Solutions had the weakest performance against analyst estimates in the group. The stock is down 24.1% since the results and currently trades at $90.47.

Read our full analysis of Skyworks Solutions'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 $2.97 billion, up 78.8% year on year, beating analyst expectations by 4.82%. It was a very strong quarter for the company, with a beat on the bottom line.

Analog Devices achieved the strongest analyst estimates beat and fastest revenue growth among the peers. The stock is down 9.53% since the results and currently trades at $148.31.

Read our full, actionable report on Analog Devices here, it's free.

ON Semiconductor (NASDAQ:ON)

Spun out of Motorola in 1999, and built through a series of acquisitions, ON Semiconductor (NASDAQ: ON) is a global provider of analog chips with specialization in autos, industrial applications, and power management in cloud data centers.

ON Semiconductor reported revenues of $1.94 billion, up 31.2% year on year, beating analyst expectations by 2.01%. It was a very strong quarter for the company, with a significant improvement in gross margin.

The stock is down 2.47% since the results and currently trades at $50.79.

Read our full, actionable report on ON Semiconductor here, it's free.

The author has no position in any of the stocks mentioned