Quarterly earnings results are a good time to check in on a company’s progress, especially compared to other peers in the same sector. Today we are looking at ON Semiconductor (NASDAQ:ON), and the best and worst performers in the analog semiconductors group.
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 slower Q1; on average, revenues beat analyst consensus estimates by 0.91%, while on average next quarter revenue guidance was 2.07% under consensus. There has been a stampede out of high valuation technology stocks as raising interest rates encourage investors to value profits over growth again, but analog semiconductors stocks held their ground better than others, with the share prices up 6.53% since the previous earnings results, on average.
Best Q1: 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 $1.96 billion, flat year on year, beating analyst expectations by 1.79%. It was a solid quarter for the company, with a beat on the bottom line and very optimistic guidance for the next quarter.
“We continued our momentum with first quarter results exceeding expectations despite macroeconomic uncertainties. Our accelerating Silicon Carbide manufacturing output exceeded our internal plans and enabled us to nearly double our silicon carbide revenue quarter-over-quarter, and we grew both ADAS and energy infrastructure revenue by approximately 50% year-over-year. As secular tailwinds propel our business, we are prudently managing our operations to deliver consistent and predictable results in the current market environment,” said Hassane El-Khoury, President and CEO of onsemi.
The stock is up 20.6% since the results and currently trades at $86.80.
Is now the time to buy ON Semiconductor? Access our full analysis of the earnings results here, it's free.
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 $3.26 billion, up 9.79% year on year, beating analyst expectations by 1.77%. It was a slower quarter for the company, with underwhelming revenue guidance for the next quarter and an increase in inventory levels.
The stock is down 4.32% since the results and currently trades at $179.80.
Is now the time to buy Analog Devices? Access our full analysis of the earnings results here, it's free.
Weakest Q1: 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 $57 million, down 45.2% year on year, missing analyst expectations by 6.55%. 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.
Magnachip had the weakest performance against analyst estimates and slowest revenue growth in the group. The stock is up 18.7% since the results and currently trades at $10.29.
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 $451.1 million, up 19.4% year on year, in line with analyst expectations. It was a weaker quarter for the company, with underwhelming revenue guidance for the next quarter.
The stock is up 6.74% since the results and currently trades at $489.89.
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 $85.9 million, up 61.6% year on year, beating analyst expectations by 2.76%. It was a weak quarter for the company, with underwhelming revenue guidance for the next quarter and a miss on the bottom line.
Impinj pulled off the fastest revenue growth among the peers. The stock is down 23.6% since the results and currently trades at $103.4.
The author has no position in any of the stocks mentioned