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Winners And Losers Of Q2: Western Digital Corporation (NASDAQ:WDC) Vs The Rest Of The Semiconductors Stocks


Jabin Bastian /
2022/10/13 3:16 am EDT
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As the craze of earnings season draws to a close, here's a look back at some of the most exciting (and some less so) results from Q2. Today we are looking at the semiconductors stocks, starting with Western Digital Corporation (NASDAQ:WDC).

The semiconductor industry is driven by cyclical demand for advanced electronic products like smartphones, PCs, servers and data storage. While analog chips serve as the building blocks of most electronic goods and equipment, processors (CPUs) and graphics chips serve as their brains. The growth of data and technologies like artificial intelligence, 5G, Internet of Things and smart cars are creating a next wave of secular growth for the industry.

The 22 semiconductors stocks we track reported a mixed Q2; on average, revenues beat analyst consensus estimates by 1.17%, while on average next quarter revenue guidance was 3.29% under consensus. Investors abandoned cash burning companies since high interest rates will make it harder to raise capital and semiconductors stocks have not been spared, with share prices down 23.4% since the previous earnings results, on average.

Western Digital Corporation (NASDAQ:WDC)

Founded in 1970 by a Motorola employee, Western Digital (NASDAQ: WDC) is a leading producer of hard disk drives, SSDs and flash memory.

Western Digital Corporation reported revenues of $4.52 billion, down 7.97% year on year, missing analyst expectations by 0.98%. It was a weak quarter for the company, with a revenue decline and an underwhelming revenue guidance for the next quarter.

"I am proud of our team for driving strong fiscal year 2022 performance, during which revenue grew 11% and non-GAAP EPS increased 81%, demonstrating progress in unlocking the earnings potential of our business,” said David Goeckeler, Western Digital CEO.

Western Digital Corporation Total Revenue

The stock is down 30.3% since the results and currently trades at $34.78.

Read our full report on Western Digital Corporation here, it's free.

Best Q2: 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 $461 million, up 57.1% year on year, beating analyst expectations by 7.06%. It was an exceptional quarter for the company, with a beat on the bottom line and a significant improvement in operating margin.

Monolithic Power Systems Total Revenue

The stock is down 28.9% since the results and currently trades at $328.13.

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

Weakest Q2: Intel (NASDAQ:INTC)

Inventor of the x86 processor that powered decades of technological innovation in PCs, data centers, and numerous other markets, Intel (NASDAQ: INTC) is the leading manufacturer of computer processors and graphics chips.

Intel reported revenues of $15.3 billion, down 22% year on year, missing analyst expectations by 14.5%. It was a weak quarter for the company, with revenue guidance for both the next quarter and the full year missing analysts' estimates.

Intel had the weakest performance against analyst estimates, declining revenue, and weakest full year guidance update in the group. The stock is down 36.6% since the results and currently trades at $25.15.

Read our full analysis of Intel's results here.

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 $2.08 billion, up 24.8% year on year, beating analyst expectations by 3.5%. It was an impressive quarter for the company, with a significant improvement in gross margin and revenue guidance for the next quarter above analysts' estimates.

The stock is down 11.3% since the results and currently trades at $59.19.

Read our full, actionable report on ON Semiconductor 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 $1.02 billion, up 2.8% year on year, beating analyst expectations by 1.51%. It was a weak quarter for the company, with a full-year guidance missing analysts' expectations.

The stock is down 13.6% since the results and currently trades at $37.99.

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

The author has no position in any of the stocks mentioned