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Q3 Earnings Highs And Lows: Texas Instruments (NASDAQ:TXN) Vs The Rest Of The Analog Semiconductors Stocks


Kayode Omotosho /
2022/01/24 6:17 am EST
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Heading into the new earnings season, it’s time to take stock of this quarters’ best and worst performers amongst the analog semiconductors stocks in Q3, including Texas Instruments (NASDAQ:TXN) 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 7 analog semiconductors stocks we track reported a solid Q3; on average, revenues beat analyst consensus estimates by 1.65%, while on average next quarter revenue guidance was 2.68% above consensus. Tech stocks have been under pressure since the end of last year, but analog semiconductors stocks held their ground better than others, with share price down 3.38% since earnings, on average.

Weakest Q3: Texas Instruments (NASDAQ:TXN)

Headquartered in Dallas, Texas since the 1950s, Texas Instruments (NASDAQ: TXN) is the world’s largest producer of analog semiconductors.

Texas Instruments reported revenues of $4.64 billion, up 21.6% year on year, missing analyst expectations by 0.58%. It was a weaker quarter for the company, with an underwhelming revenue guidance for the next quarter and a miss of the top line analyst estimates.

Texas Instruments Total Revenue

Texas Instruments delivered the biggest earnings miss of the whole group. The stock is down 10.5% since the results and currently trades at $176.19.

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

Best Q3: ON Semiconductor (NASDAQ:ON)

Spun out of Motorola in 1999, and built through a series of acquisitions, ON Semiconductor (NASDAQ: ON) is a global provider of analog chips with specialization in autos, industrial applications, and power management in cloud data centers.

ON Semiconductor reported revenues of $1.74 billion, up 32.2% year on year, beating analyst expectations by 1.7%. It was a very strong quarter for the company, with a significant improvement in gross margin and revenue guidance for the next quarter above analyst estimates.

ON Semiconductor Total Revenue

The stock is up 13.5% since the results and currently trades at $54.67.

Is now the time to buy ON Semiconductor? 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, 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 $951 million, up 20.6% year on year, beating analyst expectations by 2.28%. It was a weaker quarter for the company, with an underwhelming revenue guidance for the next quarter missing analyst estimates.

The stock is up 3.43% since the results and currently trades at $58.73.

Read our full analysis of Sensata Technologies's results here.

Analog Devices (NASDAQ:ADI)

Founded by two MIT graduates, Ray Stata and Matthew Lorber in 1965, Analog Devices (NASDAQ:ADI) is one of the largest providers of high performance analog integrated circuits used mainly in industrial end markets, along with communications, autos, and consumer devices.

Analog Devices reported revenues of $2.33 billion, up 53.2% year on year, beating analyst expectations by 1.33%. It was a strong quarter for the company, with a significant improvement in inventory levels.

Analog Devices pulled off the fastest revenue growth among the peers. The stock is down 13.8% since the results and currently trades at $160.07.

Read our full, actionable report on Analog Devices 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 $2.86 billion, up 26.2% year on year, in line with analyst expectations. It was a decent quarter for the company, with a significant improvement in gross margin.

The stock is down 2.96% since the results and currently trades at $199.39.

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

The author has no position in any of the stocks mentioned