Wrapping up Q1 earnings, we look at the numbers and key takeaways for the analog semiconductors stocks, 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. 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 slower Q1; on average, revenues beat analyst consensus estimates by 0.91%, while on average next quarter revenue guidance was 2.07% under consensus. Tech stocks have been under pressure as inflation makes their long-dated profits less valuable, but analog semiconductors stocks held their ground better than others, with the share prices up 12% since the previous earnings results, 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 $998.2 million, up 2.3% year on year, beating analyst expectations by 1.36%. It was a mixed quarter for the company, with a beat on the bottom line but underwhelming revenue guidance for the next quarter.
"Sensata delivered strong results in the first quarter with revenues and adjusted earnings above the mid-point of our financial guidance for the quarter. Sensata remains on track to achieve its long-term goals within Electrification, including scaling its Electrification business to $2 billion in revenue by 2026,” said Jeff Cote, CEO and President of Sensata.
The stock is down 7.15% since the results and currently trades at $44.44.
Best Q1: 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 $871 million, up 2.02% year on year, beating analyst expectations by 2.98%. It was a very strong quarter for the company, with a beat on the bottom line and very optimistic guidance for the next quarter.
The stock is up 31.6% since the results and currently trades at $27.85.
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Weakest Q1: 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 $57 million, down 45.2% year on year, missing analyst expectations by 6.55%. 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.
Magnachip had the weakest performance against analyst estimates and slowest revenue growth in the group. The stock is up 26.5% since the results and currently trades at $10.97.
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 $1.96 billion, flat year on year, beating analyst expectations by 1.79%. It was a solid quarter for the company, with a beat on the bottom line and strong revenue guidance for the next quarter.
The stock is up 30.2% since the results and currently trades at $93.65.
Universal Display (NASDAQ:OLED)
Serving major consumer electronics manufacturers, Universal Display (NASDAQ:OLED) is a provider of organic light emitting diode (OLED) technologies used in display and lighting applications.
Universal Display reported revenues of $130.5 million, down 13.3% year on year, missing analyst expectations by 3.49%. It was a slower quarter for the company, with a miss of the top line analyst estimates and a decline in gross margin.
The stock is up 12.1% since the results and currently trades at $143.97.
The author has no position in any of the stocks mentioned