9036

Analog Semiconductors Stocks Q3 Results: Benchmarking Texas Instruments (NASDAQ:TXN)


Radek Strnad /
2023/01/09 2:58 am EST

Looking back on analog semiconductors stocks' Q3 earnings, we examine this quarter's best and worst performers, 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. 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 10 analog semiconductors stocks we track reported a decent Q3; on average, revenues beat analyst consensus estimates by 1.28%, while on average next quarter revenue guidance was 2.24% 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 8.2% since the previous earnings results, 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 $5.24 billion, up 12.8% year on year, beating analyst expectations by 1.9%. It was a weaker quarter for the company, with underwhelming revenue guidance for the next quarter and an increase in inventory levels.

Texas Instruments Total Revenue

The stock is up 7.76% since the results and currently trades at $174.75.

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

Best Q3: 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 $924.7 million, up 13.6% year on year, in line with analyst expectations. It was an impressive quarter for the company, with a significant improvement in gross margin and a beat on the bottom line.

Vishay Intertechnology Total Revenue

Vishay Intertechnology had the weakest performance against analyst estimates among its peers. The stock is up 3.92% since the results and currently trades at $22.22.

Is now the time to buy Vishay Intertechnology? 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 $1.01 billion, up 7.07% year on year, beating analyst expectations by 1.23%. It was a weaker quarter for the company, with slow revenue growth and a decline in gross margin.

Sensata Technologies had the slowest revenue growth in the group. The stock is up 3.98% since the results and currently trades at $43.34.

Read our full analysis of Sensata Technologies'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 $3.44 billion, up 20.4% year on year, in line with analyst expectations. It was a weaker quarter for the company, with underwhelming revenue guidance for the next quarter and an increase in inventory levels.

The stock is up 8.61% since the results and currently trades at $158.66.

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

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 $2.19 billion, up 25.8% year on year, beating analyst expectations by 3.57%. It was a very strong quarter for the company, with a significant improvement in gross margin.

ON Semiconductor pulled off the strongest analyst estimates beat among the peers. The stock is down 7.35% since the results and currently trades at $62.45.

Read our full, actionable report on ON Semiconductor here, it's free.

The author has no position in any of the stocks mentioned