9540

Analog Semiconductors Stocks Q4 Results: Benchmarking Sensata (NYSE:ST)


Adam Hejl /
2022/03/24 7:55 am EDT
Add to Watchlist

Earnings results often give us a good indication of what direction the company will take in the months ahead. With Q4 now behind us, let’s have a look at Sensata (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 10 analog semiconductors stocks we track reported a solid Q4; on average, revenues beat analyst consensus estimates by 2.96%, while on average next quarter revenue guidance was 4.79% above consensus. The technology sell-off has been putting pressure on stocks since November, but analog semiconductors stocks held their ground better than others, with share price down 1.23% since earnings, on average.

Weakest Q4: Sensata (NYSE:ST)

Originally a temperature sensor control maker and part of Texas Instruments for 60 years, before eventually being spun out, Sensata Technology (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 reported revenues of $934.5 million, up 3.1% year on year, beating analyst expectations by 1.73%. It was a mixed quarter for the company, with topline results beating analysts' expectations but underwhelming revenue guidance for the next quarter.

"Fourth quarter results were stronger than expected. Sensata's revenue growth outpaced markets by 800 basis points offsetting meaningful declines in automotive production versus the prior-year quarter,” said Jeff Cote, CEO and President of Sensata.

Sensata Technologies Total Revenue

The stock is down 11.1% since the results and currently trades at $50.96.

Read our full report on Sensata Technologies 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 up 5.13% since the results and currently trades at $60.40.

Is now the time to buy ON Semiconductor? Access our full analysis of the earnings results 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 year on year, and in line with analyst expectations. It was a weaker quarter for the company, with a slow revenue growth and revenue guidance for the next quarter roughly in line with analysts' expectations.

The stock is down 3.44% since the results and currently trades at $133.77.

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

NXP Semiconductors (NASDAQ:NXPI)

Spun off from Dutch electronics giant Philips in 2006, NXP Semiconductors (NASDAQ: NXPI) is a designer and manufacturer of chips used in autos, industrial manufacturing, mobile devices, and communications infrastructure.

NXP Semiconductors reported revenues of $3.03 billion, up 21.2% year on year, beating analyst expectations by 1.19%. It was a decent quarter for the company, with a significant improvement in gross margin.

The stock is down 10.2% since the results and currently trades at $184.43.

Read our full, actionable report on NXP Semiconductors 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 $159.6 million, up 7.48% year on year, in line with analyst expectations. It was an ok quarter for the company, with a significant improvement in gross margin and revenue guidance for the next quarter roughly in line with what analysts were expecting.

MACOM Technology had the weakest performance against analyst estimates among the peers. The stock is up 3% since the results and currently trades at $59.87.

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

The author has no position in any of the stocks mentioned