Looking back on analog semiconductors stocks' Q1 earnings, we examine this quarters’ best and worst performers, including Skyworks Solutions (NASDAQ:SWKS) 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. The biggest secular growth drivers currently are the adoption of electric vehicles, 5G networks and Internet of Things connectivity, and demand for chips that reduce power consumption. 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 9 analog semiconductors stocks we track reported a decent Q1; on average, revenues beat analyst consensus estimates by 2.31%, while on average next quarter revenue guidance was 1.65% above consensus. The technology sell-off has been putting pressure on stocks since November and while some of the analog semiconductors stocks have fared somewhat better, they have not been spared, with share price declining 10.4% since earnings, on average.
Weakest Q1: Skyworks Solutions (NASDAQ:SWKS)
Result of a merger of Alpha Industries and the wireless communications division of Conexant, Skyworks Solutions (NASDAQ: SWKS) is a designer and manufacturer of chips used in smartphones, autos, and industrial applications to amplify, filter, and process wireless signals.
Skyworks Solutions reported revenues of $1.33 billion, up 13.9% year on year, in line with analyst expectations. It was a weak quarter for the company, with an underwhelming revenue guidance for the next quarter and an increase in inventory levels.
“Skyworks delivered record second quarter results, with double-digit year-over-year growth in both revenue and non-GAAP earnings per share,” said Liam K. Griffin, chairman, chief executive officer and president of Skyworks.
Skyworks Solutions delivered the weakest performance against analyst estimates of the whole group. The stock is down 21.3% since the results and currently trades at $93.87.
Is now the time to buy Skyworks Solutions? Access our full analysis of the earnings results here, it's free.
Best Q1: 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 $377.7 million, up 48.4% year on year, beating analyst expectations by 4.8%. It was a very strong quarter for the company, with a beat on the bottom line and a very optimistic guidance for the next quarter.
The stock is down 4.57% since the results and currently trades at $392.41.
Is now the time to buy Monolithic Power Systems? Access our full analysis of the earnings results here, it's free.
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 $975.7 million, up 3.52% year on year, beating analyst expectations by 1.57%. It was a weaker quarter for the company, with an underwhelming revenue guidance for the next quarter and a slow revenue growth.
Sensata Technologies had the slowest revenue growth in the group. The stock is down 14.1% since the results and currently trades at $41.83.
Read our full analysis of Sensata Technologies's results here.
Microchip Technology (NASDAQ:MCHP)
Spun out from General Instrument in 1987, Microchip Technology (NASDAQ: MCHP) is a leading provider of microcontrollers and integrated circuits used mainly in the automotive world, especially in electric vehicles and their charging devices.
Microchip Technology reported revenues of $1.84 billion, up 25.7% year on year, beating analyst expectations by 1.4%. It was a strong quarter for the company, with a beat on the bottom line, and revenue guidance for the next quarter above analysts' estimates.
The stock is down 9.86% since the results and currently trades at $58.05.
Read our full, actionable report on Microchip Technology 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 $3.13 billion, up 22.1% year on year, beating analyst expectations by 1.04%. It was a solid quarter for the company, with a significant improvement in operating margin.
The stock is down 15.5% since the results and currently trades at $149.50.
Read our full, actionable report on NXP Semiconductors here, it's free.
The author has no position in any of the stocks mentioned