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Q4 Earnings Rundown: Texas Instruments (NASDAQ:TXN) Vs Other Analog Semiconductors Stocks


Adam Hejl /
2022/04/11 9:17 am EDT
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As we reflect back on the just completed Q4 analog semiconductors sector earnings season, we dig into the relative performance of 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 strong Q4; on average, revenues beat analyst consensus estimates by 2.68%, while on average next quarter revenue guidance was 4.03% above consensus. The technology sell-off has been putting pressure on stocks since November and while some of the analog semiconductors stocks have fared somewhat better, they have not been spared, with share price declining 10.5% 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 $4.83 billion, up 18.5% year on year, beating analyst expectations by 9.05%. It was a very strong quarter for the company, with an impressive beat of analyst estimates and a very optimistic guidance for the next quarter.

Texas Instruments Total Revenue

Texas Instruments scored the strongest analyst estimates beat of the whole group. The stock is down 0.79% since the results and currently trades at $172.79.

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

Best Q4: 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 $1.84 billion, up 27.6% year on year, beating analyst expectations by 3.08%. It was an impressive quarter for the company, with a significant improvement in gross margin and a beat on the bottom line.

ON Semiconductor Total Revenue

The stock is down 9.48% since the results and currently trades at $52.

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

Weakest Q4: 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 $934.5 million, up 3.1% year on year, beating analyst expectations by 1.73%. It was a weaker quarter for the company, with an underwhelming revenue guidance for the next quarter and a slow revenue growth.

The stock is down 17.8% since the results and currently trades at $47.11.

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

Microchip Technology (NASDAQ:MCHP)

Spun out from General Instrument in 1987, Microchip Technology (NASDAQ: MCHP) is a leading provider of microcontrollers and integrated circuits used mainly in the automotive world, especially in electric vehicles and their charging devices.

Microchip Technology reported revenues of $1.75 billion, up 29.9% year on year, in line with analyst expectations. It was a solid quarter for the company, with a meaningful improvement in operating margin and guidance for the next quarter above analysts' estimates.

The stock is down 12.1% since the results and currently trades at $65.19.

Read our full, actionable report on Microchip Technology here, it's free.

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 $1.51 billion, flat 0.02% year on year, in line with analyst expectations. It was a weaker quarter for the company, with slow revenue growth and underwhelming revenue guidance for the next quarter.

Skyworks Solutions had the slowest revenue growth among the peers. The stock is down 12.6% since the results and currently trades at $121.

Read our full, actionable report on Skyworks Solutions here, it's free.

The author has no position in any of the stocks mentioned