Looking back on analog semiconductors stocks' Q3 earnings, we examine 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 15 analog semiconductors stocks we track reported a weak Q3; on average, revenues were in line with analyst consensus estimates while next quarter's revenue guidance was 8% below consensus. Inflation (despite slowing) has investors prioritizing near-term cash flows, but analog semiconductors stocks held their ground better than others, with the share prices up 14.9% on average since the previous earnings results.
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 $3.43 billion, down 0.3% year on year, in line with analyst expectations. It was a mixed quarter for the company, with a decent beat of analysts' EPS estimates but underwhelming revenue guidance for the next quarter.
“NXP delivered quarterly revenue of $3.43 billion, $34 million above the midpoint of guidance. Revenue trends in our Mobile, Industrial & IoT and Automotive end-markets all performed in-line or better than anticipated, while our Communication Infrastructure & Other end market was slightly below our expectations. The combination of our third quarter results, and the mid-point of our fourth quarter guidance indicates revenue for the full year 2023 will be flat versus 2022 in a challenging and cyclical market environment,” said Kurt Sievers, NXP President and Chief Executive Officer.
The stock is up 15.1% since the results and currently trades at $211.
Is now the time to buy NXP Semiconductors? Access our full analysis of the earnings results here, it's free.
Best Q3: 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 $474.9 million, down 4.1% year on year, in line with analyst expectations. It was a mixed quarter for the company, with a significant improvement in its inventory levels but a decline in its gross margin.
The stock is up 46.1% since the results and currently trades at $589.8.
Is now the time to buy Monolithic Power Systems? Access our full analysis of the earnings results here, it's free.
Weakest Q3: Power Integrations (NASDAQ:POWI)
A leading supplier of parts for electronics such as home appliances, Power Integrations (NASDAQ:POWI) is a semiconductor designer and developer specializing in products used for high-voltage power conversion.
Power Integrations reported revenues of $125.5 million, down 21.7% year on year, falling short of analyst expectations by 3.7%. It was a weak quarter for the company, with underwhelming revenue guidance for the next quarter and a miss of analysts' revenue estimates.
Power Integrations had the slowest revenue growth in the group. The stock is up 2.7% since the results and currently trades at $77.25.
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 specializing in autos, industrial applications, and power management in cloud data centers.
ON Semiconductor reported revenues of $2.18 billion, down 0.5% year on year, surpassing analyst expectations by 1.5%. It was a slower quarter for the company, with underwhelming revenue guidance for the next quarter and a decline in its operating margin.
The stock is down 8.3% since the results and currently trades at $76.66.
Founded by Caltech professor Carver Mead and one of his students Chris Diorio, Impinj (NASDAQ:PI) is a maker of radio-frequency identification (RFID) hardware and software.
Impinj reported revenues of $65.01 million, down 4.8% year on year, in line with analyst expectations. It was a mixed quarter for the company, with a decline in its operating margin. On the other hand, Impinj significantly blew past analysts' EPS expectations. Next quarter's revenue guidance was raised and came in higher than Wall Street's estimates.
The stock is up 71.2% since the results and currently trades at $85.1.
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The author has no position in any of the stocks mentioned