Q4 Earnings Roundup: Microchip Technology (NASDAQ:MCHP) And The Rest Of The Analog Semiconductors Segment
Let's dig into the relative performance of Microchip Technology (NASDAQ:MCHP) and its peers as we unravel the now-completed Q4 analog semiconductors earnings season.
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 weaker Q4; on average, revenues were in line with analyst consensus estimates while next quarter's revenue guidance was 3.6% below consensus. Stocks have faced challenges as investors prioritize near-term cash flows, but analog semiconductors stocks held their ground better than others, with the share prices up 0.8% on average since the previous earnings results.
Microchip Technology (NASDAQ:MCHP)
Spun out from General Instrument in 1987, Microchip Technology (NASDAQ: MCHP) is a leading provider of microcontrollers and integrated circuits used mainly in the automotive world, especially in electric vehicles and their charging devices.
Microchip Technology reported revenues of $1.77 billion, down 18.6% 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 an increase in its inventory levels.
"Our December quarter performance fell short of our November guidance, primarily due to weaker business conditions," said Ganesh Moorthy, President and Chief Executive Officer.
The stock is up 2.6% since the results and currently trades at $87.84.
Read our full report on Microchip Technology here, it's free.
Best Q4: Himax (NASDAQ:HIMX)
Taiwan-based Himax Technologies (NASDAQ:HIMX) is a leading manufacturer of display driver chips and timing controllers used in TVs, laptops, and mobile phones.
Himax reported revenues of $227.7 million, down 13.2% year on year, in line with analyst expectations. It was a very strong quarter for the company, with a significant improvement in its inventory levels.
The stock is down 3.6% since the results and currently trades at $5.44.
Is now the time to buy Himax? Access our full analysis of the earnings results here, it's free.
Weakest Q4: 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 $4.08 billion, down 12.7% year on year, falling short of analyst expectations by 1.4%. It was a weak quarter for the company, with underwhelming revenue guidance for the next quarter and a miss of analysts' revenue estimates.
The stock is down 1.3% since the results and currently trades at $172.06.
Read our full analysis of Texas Instruments's results here.
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 $50.82 million, down 16.7% year on year, falling short of analyst expectations by 3.1%. It was a weak quarter for the company, with underwhelming revenue guidance for the next quarter. In addition, its revenue and free cash flow missed analysts' estimates, driven by weakness in its industrial and automotive end markets.
Magnachip had the weakest performance against analyst estimates among its peers. The stock is down 18.9% since the results and currently trades at $5.42.
Read our full, actionable report on Magnachip here, it's free.
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 $157.1 million, down 12.7% year on year, surpassing analyst expectations by 2.9%. It was a mixed quarter for the company, with revenue guidance for next quarter exceeding analysts' expectations. On the other hand, its operating margin fell, its gross margin shrunk, and its EPS guidance for next quarter underwhelmed.
MACOM scored the biggest analyst estimates beat among its peers. The stock is up 12.1% since the results and currently trades at $96.67.
Read our full, actionable report on MACOM here, it's free.
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