As the Q3 earnings season wraps, let’s dig into this quarter’s best and worst performers in the analog semiconductors industry, including MACOM (NASDAQ: MTSI) 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 mixed Q3. As a group, revenues beat analysts’ consensus estimates by 0.8% while next quarter’s revenue guidance was 3.2% below.
Amidst this news, share prices of the companies have had a rough stretch. On average, they are down 9.4% since the latest earnings results.
MACOM (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 reported revenues of $200.7 million, up 33.5% year on year. This print was in line with analysts’ expectations, but overall, it was a mixed quarter for the company with revenue guidance for next quarter beating analysts’ expectations but a miss of analysts’ adjusted operating income estimates.
“Our team continues to identify opportunities to expand our customer base and gain share with our leading products and technologies,” said Stephen G. Daly, President and Chief Executive Officer.
Interestingly, the stock is up 8.5% since reporting and currently trades at $132.49.
Read our full report on MACOM here, it’s free.
Best Q3: 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 $95.2 million, up 46.4% year on year, outperforming analysts’ expectations by 2.5%. The business had a very strong quarter with a solid beat of analysts’ EPS estimates and an impressive beat of analysts’ adjusted operating income estimates.
Impinj pulled off the fastest revenue growth among its peers. Although it had a fine quarter compared its peers, the market seems unhappy with the results as the stock is down 36.6% since reporting. It currently trades at $140.11.
Is now the time to buy Impinj? Access our full analysis of the earnings results here, it’s free.
Slowest Q3: 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 $735.4 million, down 13.9% year on year, falling short of analysts’ expectations by 1.8%. It was a disappointing quarter as it posted full-year revenue guidance missing analysts’ expectations.
Vishay Intertechnology delivered the weakest full-year guidance update in the group. Interestingly, the stock is up 4.4% since the results and currently trades at $17.80.
Read our full analysis of Vishay Intertechnology’s results here.
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 $620.1 million, up 30.6% year on year. This result topped analysts’ expectations by 3.3%. Overall, it was a strong quarter as it also logged a significant improvement in its inventory levels and a decent beat of analysts’ adjusted operating income estimates.
The stock is down 34.3% since reporting and currently trades at $604.
Read our full, actionable report on Monolithic Power Systems here, it’s free.
Texas Instruments (NASDAQ: TXN)
Headquartered in Dallas, Texas since the 1950s, Texas Instruments (NASDAQ: TXN) is the world’s largest producer of analog semiconductors.
Texas Instruments reported revenues of $4.15 billion, down 8.4% year on year. This number surpassed analysts’ expectations by 0.8%. It was a strong quarter as it also recorded an impressive beat of analysts’ adjusted operating income estimates and a solid beat of analysts’ EPS estimates.
The stock is down 4.5% since reporting and currently trades at $185.26.
Read our full, actionable report on Texas Instruments here, it’s free.
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