Quarterly earnings results are a good time to check in on a company’s progress, especially compared to other peers in the same sector. Today we are looking at Skyworks Solutions (NASDAQ:SWKS), and the best and worst performers in the analog semiconductors group.
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 slower Q1; on average, revenues beat analyst consensus estimates by 0.91%, while on average next quarter revenue guidance was 2.07% under consensus. Investors abandoned cash burning companies since high interest rates will make it harder to raise capital, but analog semiconductors stocks held their ground better than others, with the share prices up 9.88% 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 $1.15 billion, down 13.7% year on year, missing analyst expectations by 0.05%. It was a weak quarter for the company, with underwhelming revenue guidance for the next quarter and an increase in inventory levels.
“Despite a challenging macro backdrop, the fundamentals of our business remained strong in the second quarter with solid profitability and robust cash generation,” said Liam K. Griffin, chairman, chief executive officer and president of Skyworks.
The stock is up 3.99% since the results and currently trades at $109.53.
Is now the time to buy Skyworks Solutions? Access our full analysis of the earnings results here, it's free.
Best Q1: 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 $871 million, up 2.02% year on year, beating analyst expectations by 2.98%. It was a very strong quarter for the company, with a beat on the bottom line and very optimistic guidance for the next quarter.
The stock is up 31% since the results and currently trades at $27.71.
Is now the time to buy Vishay Intertechnology? Access our full analysis of the earnings results here, it's free.
Weakest Q1: 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 $57 million, down 45.2% year on year, missing analyst expectations by 6.55%. 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.
Magnachip had the weakest performance against analyst estimates and slowest revenue growth in the group. The stock is up 23.8% since the results and currently trades at $10.73.
Read our full analysis of Magnachip's results here.
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 $3.12 billion, down 0.48% year on year, beating analyst expectations by 3.95%. It was a decent quarter for the company, with very optimistic guidance for the next quarter but an increase in inventory levels.
The stock is up 17.5% since the results and currently trades at $195.
Read our full, actionable report on NXP Semiconductors 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 $998.2 million, up 2.3% year on year, beating analyst expectations by 1.36%. It was a mixed quarter for the company, with a decent beat of topline estimates but underwhelming revenue guidance for the next quarter.
The stock is down 5.95% since the results and currently trades at $45.01.
Read our full, actionable report on Sensata Technologies here, it's free.
The author has no position in any of the stocks mentioned