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Analog Semiconductors Stocks Q1 In Review: Texas Instruments (NASDAQ:TXN) Vs Peers


Adam Hejl /
2022/06/10 7:37 am EDT
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As Q1 earnings season comes to a close, it’s time to take stock of this quarters’ best and worst performers amongst the analog semiconductors stocks, 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 9 analog semiconductors stocks we track reported a decent Q1; on average, revenues beat analyst consensus estimates by 2.29%, while on average next quarter revenue guidance was 1.65% above consensus. The technology sell-off has been putting pressure on stocks since November, but analog semiconductors stocks held their ground better than others, with the share price up 2.32% since earnings, on average.

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 $4.9 billion, up 14.3% year on year, beating analyst expectations by 3.62%. It was a mixed quarter for the company, with a significant improvement in gross margin but an underwhelming revenue guidance for the next quarter.

Texas Instruments Total Revenue

The stock is down 3.53% since the results and currently trades at $162.51.

Is now the time to buy Texas Instruments? 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.

Monolithic Power Systems Total Revenue

The stock is up 9.4% since the results and currently trades at $449.89.

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

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 Solutions had the weakest performance against analyst estimates in the group. The stock is down 13.1% since the results and currently trades at $103.70.

Read our full analysis of Skyworks Solutions'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 $3.13 billion, up 22.1% year on year, beating analyst expectations by 1.04%. 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 4.57% since the results and currently trades at $185.10.

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 $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 among the peers. The stock is down 1.97% since the results and currently trades at $47.77.

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

The author has no position in any of the stocks mentioned