As we reflect back on the just completed Q4 analog semiconductors sector earnings season, we dig into the relative performance of Power Integrations (NASDAQ:POWI) 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. 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 share prices down 2.28% since the previous earnings results, on average.
Best Q4: 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 $124.8 million, down 27.7% year on year, missing analyst expectations by 0.62%. It was a weak quarter for the company, with declining revenue and underwhelming sales guidance for the next quarter.
The stock is down 8.77% since the results and currently trades at $80.19.
Read our full report on Power Integrations 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 11.3% since the results and currently trades at $21.29.
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 guidance for the next quarter.
Magnachip had the slowest revenue growth in the group. The stock is down 9.06% since the results and currently trades at $9.34.
Read our full analysis of Magnachip's results here.
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 2.79% since the results and currently trades at $47.16.
Read our full, actionable report on Sensata Technologies here, it's free.
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.
The stock is down 1.48% since the results and currently trades at $176.83.
Read our full, actionable report on NXP Semiconductors here, it's free.
The author has no position in any of the stocks mentioned