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Analog Semiconductors Stocks Q1 Results: Benchmarking Sensata Technologies (NYSE:ST)


Kayode Omotosho /
2022/06/16 4:14 am EDT
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Looking back on analog semiconductors stocks' Q1 earnings, we examine this quarters’ best and worst performers, including Sensata Technologies (NYSE:ST) 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. There has been a stampede out of high valuation technology stocks, but analog semiconductors stocks held their ground better than others, with share price down 4.61% since earnings, on average.

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 delivered higher than targeted revenue in the first quarter due to strong market outgrowth and acquired growth of 7.9% and 4.1% respectively, despite market headwinds of 5.8%. Lower volumes and increased investments in our Megatrend growth areas are weighing on margins, but these investments position Sensata for growth as evidenced by our demonstrated outgrowth and record new business wins.” said Jeff Cote, CEO and President of Sensata.

Sensata Technologies Total Revenue

Sensata Technologies delivered the slowest revenue growth of the whole group. The stock is down 9.23% since the results and currently trades at $44.23.

Read our full report on Sensata Technologies 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 2.48% since the results and currently trades at $421.44.

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 19.8% since the results and currently trades at $95.60.

Read our full analysis of Skyworks Solutions's results here.

Analog Devices (NASDAQ:ADI)

Founded by two MIT graduates, Ray Stata and Matthew Lorber in 1965, Analog Devices (NASDAQ:ADI) is one of the largest providers of high performance analog integrated circuits used mainly in industrial end markets, along with communications, autos, and consumer devices.

Analog Devices reported revenues of $2.97 billion, up 78.8% year on year, beating analyst expectations by 4.81%. It was a very strong quarter for the company, with a beat on the bottom line, and guidance for the next quarter above analysts' estimates.

Analog Devices achieved the strongest analyst estimates beat and fastest revenue growth among the peers. The stock is down 7.3% since the results and currently trades at $151.97.

Read our full, actionable report on Analog Devices 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 $1.94 billion, up 31.2% year on year, beating analyst expectations by 2.01%. It was a very strong quarter for the company, with a significant improvement in gross margin, and guidance for the next quarter above analysts' estimates.

The stock is up 12.3% since the results and currently trades at $58.53.

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

The author has no position in any of the stocks mentioned