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Winners And Losers Of Q3: Analog Devices (NASDAQ:ADI) Vs The Rest Of The Analog Semiconductors Stocks

StockStory - Thu Jan 25, 2:48AM CST

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The end of the earnings season is always a good time to take a step back and see who shined (and who not so much). Let’s take a look at how the analog semiconductors stocks have fared in Q3, starting with Analog Devices (NASDAQ:ADI).

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 weak Q3; on average, revenues were in line with analyst consensus estimates while next quarter's revenue guidance was 8.2% below consensus. Valuation multiples for growth stocks have reverted to their historical means after reaching highs in early 2021, but analog semiconductors stocks held their ground better than others, with the share prices up 18.4% on average since the previous earnings results.

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 $2.72 billion, down 16.4% year on year, in line with analyst expectations. It was a weak quarter for the company, with underwhelming revenue guidance for the next quarter and a decline in its gross margin.

Analog Devices Total Revenue

The stock is up 7.8% since the results and currently trades at $198.3.

Read our full report on Analog Devices here, it's free.

Best Q3: 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 $474.9 million, down 4.1% year on year, in line with analyst expectations. It was a mixed quarter for the company, with a significant improvement in its inventory levels but a decline in its gross margin.

Monolithic Power Systems Total Revenue

The stock is up 56.5% since the results and currently trades at $632.01.

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

Weakest Q3: 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 $125.5 million, down 21.7% year on year, falling short of analyst expectations by 3.7%. It was a weak quarter for the company, with underwhelming revenue guidance for the next quarter and a miss of analysts' revenue estimates.

Power Integrations had the slowest revenue growth in the group. The stock is up 5.7% since the results and currently trades at $79.46.

Read our full analysis of Power Integrations's results here.

Sensata Technologies (NYSE:ST)

Originally a temperature sensor control maker and a subsidiary of Texas Instruments for 60 years, 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 $1.00 billion, down 1.7% year on year, falling short of analyst expectations by 0.4%. It was a weaker quarter for the company, with underwhelming revenue guidance for the next quarter and an increase in its inventory levels.

The stock is up 3.6% since the results and currently trades at $35.32.

Read our full, actionable report on Sensata Technologies 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 $1.22 billion, down 13.4% year on year, in line with analyst expectations. It was a weaker quarter for the company, with underwhelming revenue guidance for the next quarter and a decline in its gross margin.

The stock is up 19.9% since the results and currently trades at $107.3.

Read our full, actionable report on Skyworks Solutions here, it's free.

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The author has no position in any of the stocks mentioned

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