As we reflect back on the just completed Q4 analog semiconductors sector earnings season, we dig into the relative performance of Magnachip (NYSE:MX) 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 15 analog semiconductors stocks we track reported a weaker Q4; on average, revenues beat analyst consensus estimates by 1.69%, while on average next quarter revenue guidance was 2.68% under consensus. There has been a stampede out of high valuation technology stocks as raising interest rates encourage investors to value profits over growth again , but analog semiconductors stocks held their ground better than others, with share prices down 0.04% since the previous earnings results, on average.
Best Q4: Magnachip (NYSE:MX)
With its technology found in common consumer electronics such as TVs and smartphones, Magnachip Semiconductor (NYSE:MX) is a provider of analog and mixed-signal semiconductors.
Magnachip reported revenues of $61 million, down 44.7% year on year, beating analyst expectations by 2.22%. It was a weak quarter for the company, with declining revenue and underwhelming revenue guidance for the next quarter.
YJ Kim, Magnachip's chief executive officer commented, "We closed the fourth quarter with $61.0 million revenue, near the high-end of our guidance range. Q4 results continued to reflect the impact of severe wafer shortages and inventory correction in our Display business and deteriorating consumer demand in our Power Solutions business."
Magnachip delivered the slowest revenue growth of the whole group. The stock is down 9.06% since the results and currently trades at $9.34.
Read our full report on Magnachip here, it's free.
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 $855.3 million, up 1.45% year on year, missing analyst expectations by 3.1%. It was a weak quarter for the company, with underwhelming revenue guidance for the next quarter and a miss of the top line analyst estimates.
Vishay Intertechnology had the weakest performance against analyst estimates among its peers. The stock is down 11.3% since the results and currently trades at $21.29.
Is now the time to buy Vishay Intertechnology? Access our full analysis of the earnings results here, it's free.
Power Integrations (NASDAQ:POWI)
A leading supplier of parts for electronics such as home appliances, Power Integrations (NASDAQ:POWI) is a semiconductor designer and developer specializing in products used for high-voltage power conversion.
Power Integrations reported revenues of $124.8 million, down 27.7% year on year, missing analyst expectations by 0.62%. It was a weak quarter for the company, with declining revenue and underwhelming revenue guidance for the next quarter.
The stock is down 8.77% since the results and currently trades at $80.19.
Read our full analysis of Power Integrations's results here.
Impinj (NASDAQ:PI)
Founded by Caltech professor Carver Mead and one of his students Chris Diorio, Impinj (NASDAQ:PI) is a maker of radio-frequency identification (RFID) hardware and software.
Impinj reported revenues of $76.6 million, up 45.7% year on year, in line with analyst expectations. It was a solid quarter for the company, with a significant improvement in operating margin.
Impinj delivered the fastest revenue growth among the peers. The stock is up 12.2% since the results and currently trades at $140.48.
Read our full, actionable report on Impinj here, it's free.
MACOM Technology (NASDAQ:MTSI)
Founded in the 1950s as Microwave Associates, a communications supplier to the US Army Signal Corp, today MACOM Technology Solutions (NASDAQ: MTSI) is a provider of analog chips used in optical, wireless, and satellite networks.
MACOM Technology reported revenues of $180.1 million, up 12.8% year on year, in line with analyst expectations. It was a mixed quarter for the company, with underwhelming revenue guidance for the next quarter and an increase in inventory levels.
The stock is up 2.95% since the results and currently trades at $70.49.
Read our full, actionable report on MACOM Technology here, it's free.
The author has no position in any of the stocks mentioned