As the craze of earnings season draws to a close, here's a look back at some of the most exciting (and some less so) results from Q3. Today we are looking at the semiconductors stocks, starting with Seagate Technology (NASDAQ:STX).
The semiconductor industry is driven by cyclical demand for advanced electronic products like smartphones, PCs, servers and data storage. While analog chips serve as the building blocks of most electronic goods and equipment, processors (CPUs) and graphics chips serve as their brains. The growth of data and technologies like artificial intelligence, 5G, Internet of Things and smart cars are creating a next wave of secular growth for the industry.
The 24 semiconductors stocks we track reported a slower Q3; on average, revenues beat analyst consensus estimates by 1.36%, while on average next quarter revenue guidance was 4.34% under consensus. Investors abandoned cash burning companies since high interest rates will make it harder to raise capital, but semiconductors stocks held their ground better than others, with the share prices up 14.1% since the previous earnings results, on average.
Seagate Technology (NASDAQ:STX)
The developer of the original 5.25inch hard disk drive, Seagate (NASDAQ:STX) is a leading producer of data storage solutions, including hard drives and Solid State Drives (SSDs) used in PCs and data centers.
Seagate Technology reported revenues of $2.03 billion, down 34.6% year on year, missing analyst expectations by 3.36%. It was a weak quarter for the company, with declining revenue and underwhelming revenue guidance for the next quarter.
“Global economic uncertainties and broad-based customer inventory corrections worsened in the latter stages of the September quarter, and these dynamics are reflected in both near-term industry demand and Seagate's financial performance. We have taken quick and decisive actions to respond to current market conditions and enhance long-term profitability, including adjusting our production output and annual capital expenditure plans, and announcing a restructuring plan that will deliver meaningful cost savings while maintaining investments in the mass capacity solutions driving our future growth,” said Dave Mosley, Seagate’s chief executive officer.
Seagate Technology delivered the weakest performance against analyst estimates of the whole group. The stock is down 0.96% since the results and currently trades at $57.41.
Best Q3: 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 $924.7 million, up 13.6% year on year, in line with analyst expectations. It was an impressive quarter for the company, with a significant improvement in gross margin and a beat on the bottom line.
The stock is up 7.39% since the results and currently trades at $22.96.
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Micron Technology (NASDAQ:MU)
Founded in the basement of a Boise, Idaho dental office in 1978, Micron (NYSE:MU) is a leading provider of memory chips used in thousands of devices across mobile, data centers, industrial, consumer, and automotive markets.
Micron Technology reported revenues of $4.08 billion, down 46.8% year on year, missing analyst expectations by 1.39%. It was a weak quarter for the company, with declining revenue and underwhelming revenue guidance for the next quarter.
The stock is up 11.1% since the results and currently trades at $56.9.
KLA Corporation (NASDAQ:KLAC)
Formed by the 1997 merger of the two leading semiconductor yield management companies, KLA Corporation (NASDAQ:KLAC) is the leading supplier of equipment used to measure and inspect semiconductor chips.
KLA Corporation reported revenues of $2.72 billion, up 30.7% year on year, beating analyst expectations by 4.95%. It was a strong quarter for the company, with a beat on the bottom line and revenue guidance for the next quarter above analysts' expectations.
The stock is up 36.6% since the results and currently trades at $419.25.
Having been at the forefront of developing the standards for cellular connectivity for over four decades, Qualcomm (NASDAQ:QCOM), is a leading innovator and a fabless manufacturer of wireless technology chips used in smartphones, autos and internet of things appliances.
Qualcomm reported revenues of $11.3 billion, up 22% year on year, in line with analyst expectations. It was a weaker quarter for the company, with underwhelming revenue guidance for the next quarter and an increase in inventory levels.
The stock is up 6.37% since the results and currently trades at $119.75.
The author has no position in any of the stocks mentioned