Wrapping up Q2 earnings, we look at the numbers and key takeaways for the analog semiconductors stocks, 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. 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 Q2; on average, revenues beat analyst consensus estimates by 3.31%, while on average next quarter revenue guidance was 1.83% above consensus. Tech stocks have been hit the hardest as investors start to value profits over growth and while some of the analog semiconductors stocks have fared somewhat better that others, they have not been spared, with share prices declining 5.37% since the previous earnings results, on average.
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 $1.23 billion, up 10.4% 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 Solutions delivered the weakest performance against analyst estimates of the whole group. The stock is down 18.3% since the results and currently trades at $92.80.
Read our full report on Skyworks Solutions here, it's free.
Best Q2: 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 $461 million, up 57.1% year on year, beating analyst expectations by 7.06%. It was an exceptional quarter for the company, with a beat on the bottom line and a significant improvement in operating margin.
The stock is down 14.6% since the results and currently trades at $394.01.
Is now the time to buy Monolithic Power Systems? Access our full analysis of the earnings results here, it's free.
Weakest Q2: 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 $1.02 billion, up 2.8% year on year, beating analyst expectations by 1.51%. It was a weak quarter for the company, with guidance for both the next quarter and full year missing analysts' expectations.
Sensata Technologies had the slowest revenue growth in the group. The stock is down 8.7% since the results and currently trades at $40.16.
Read our full analysis of Sensata Technologies's results here.
MACOM Technology (NASDAQ:MTSI)
Founded in the 1950s as Microwave Associates, a communications supplier to the US Army Signal Corp, today MACOM Technology Solutions (NASDAQ: MTSI) is a provider of analog chips used in optical, wireless, and satellite networks.
MACOM Technology reported revenues of $172.2 million, up 12.8% year on year, beating analyst expectations by 1.3%. It was a decent quarter for the company, with a significant improvement in operating margin but an increase in inventory levels.
The stock is up 6.93% since the results and currently trades at $58.28.
Read our full, actionable report on MACOM 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 $3.31 billion, up 27.5% year on year, beating analyst expectations by 1.43%. It was a decent quarter for the company, with a significant improvement in operating margin but an increase in inventory levels.
The stock is down 8.66% since the results and currently trades at $159.22.
Read our full, actionable report on NXP Semiconductors here, it's free.
The author has no position in any of the stocks mentioned