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Semiconductors Stocks Q4 In Review: Seagate Technology (NASDAQ:STX) Vs Peers


Radek Strnad /
2022/04/19 7:06 am EDT
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As we reflect back on the just completed Q4 semiconductors sector earnings season, we dig into the relative performance of Seagate Technology (NASDAQ:STX) and its peers.

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 22 semiconductors stocks we track reported a solid Q4; on average, revenues beat analyst consensus estimates by 2.43%, while on average next quarter revenue guidance was 3.46% above consensus. There has been a stampede out of high valuation technology stocks and while some of the semiconductors stocks have fared somewhat better, they have not been spared, with share price declining 11.3% since earnings, 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 $3.11 billion, up 18.7% year on year, in line with analyst expectations. It was a mixed quarter for the company, with a significant improvement in gross margin but an increase in inventory levels.

“Calendar 2021 was an outstanding year for Seagate. Compared with the prior calendar year, we grew revenue by 18% and more importantly, delivered free cash flow growth of 39%, which we are deploying effectively into our long-standing capital returns program,” said Dave Mosley, Seagate’s chief executive officer.

Seagate Technology Total Revenue

The stock is down 14% since the results and currently trades at $82.80.

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

Best Q4: AMD (NASDAQ:AMD)

Founded in 1969 by a group of former Fairchild semiconductor executives led by Jerry Sanders, Advanced Micro Devices or AMD (NASDAQ:AMD) is one of the leading designers of computer processors and graphics chips used in PCs and data centers.

AMD reported revenues of $4.82 billion, up 48.7% year on year, beating analyst expectations by 6.54%. It was a stunning quarter for the company, with a significant improvement in gross margin and a beat on the bottom line.

AMD Total Revenue

AMD pulled off the highest full year guidance raise among its peers. The stock is down 19.2% since the results and currently trades at $94.28.

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

Weakest Q4: Lam Research Corporation (NASDAQ:LRCX)

Founded in 1980 by David Lam, who pioneered semiconductor etching technology, Lam Research (NASDAQ:LCRX) is a one of the leading providers of the wafer fabrication equipment used to make semiconductors.

Lam Research Corporation reported revenues of $4.22 billion, up 51.3% year on year, missing analyst expectations by 4.26%. It was a weak quarter for the company, with an underwhelming revenue guidance for the next quarter and a miss of the top line analyst estimates.

Lam Research Corporation had the weakest performance against analyst estimates in the group. The stock is down 20.4% since the results and currently trades at $475.

Read our full analysis of Lam Research Corporation's results here.

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 $2.35 billion, up 42.5% year on year, in line with analyst expectations. It was a mixed quarter for the company, with an exceptional revenue growth but an underwhelming revenue guidance for the next quarter.

The stock is down 8.58% since the results and currently trades at $330.

Read our full, actionable report on KLA Corporation here, it's free.

Intel (NASDAQ:INTC)

Inventor of the x86 processor that powered decades of technological innovation in PCs, data centers, and numerous other markets, Intel (NASDAQ: INTC) is the leading manufacturer of computer processors and graphics chips.

Intel reported revenues of $20.5 billion, up 2.75% year on year, beating analyst expectations by 12%. It was a mixed quarter for the company, with a beat on the bottom line but a decline in operating margin.

Intel scored the strongest analyst estimates beat among the peers. The stock is down 9.61% since the results and currently trades at $46.73.

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

The author has no position in any of the stocks mentioned