Semiconductor Manufacturing Stocks Q3 Teardown: Teradyne (NASDAQ:TER) Vs The Rest
Quarterly earnings results are a good time to check in on a company’s progress, especially compared to other peers in the same sector. Today we are looking at Teradyne (NASDAQ:TER), and the best and worst performers in the semiconductor manufacturing group.
The semiconductor industry is driven by demand for advanced electronic products like smartphones, PCs, servers, and data storage. The need for technologies like artificial intelligence, 5G networks, and smart cars is also creating the next wave of growth for the industry. Keeping up with this dynamism requires new tools that can design, fabricate, and test chips at ever smaller sizes and more complex architectures, creating a dire need for semiconductor capital manufacturing equipment.
The 14 semiconductor manufacturing stocks we track reported a mixed Q3; on average, revenues beat analyst consensus estimates by 0.6% while next quarter's revenue guidance was 3.9% below consensus. Stocks have been under pressure as inflation (despite slowing) makes their long-dated profits less valuable, but semiconductor manufacturing stocks held their ground better than others, with the share prices up 19.6% on average since the previous earnings results.
Teradyne (NASDAQ:TER)
Sporting most major chip manufacturers as its customers, Teradyne (NASDAQ:TER) is a US-based supplier of automated test equipment for semiconductors as well as other technologies and devices.
Teradyne reported revenues of $703.7 million, down 14.9% year on year, topping analyst expectations by 2.9%. It was a mixed quarter for the company, with a significant improvement in its inventory levels but underwhelming revenue guidance for the next quarter.
"Greater than planned Robotics shipments and sequential growth in Semiconductor Test combined to drive sales and profits to the high end of our Q3 guidance range," said Teradyne CEO Greg Smith.
The stock is up 18.5% since the results and currently trades at $104.16.
Is now the time to buy Teradyne? Access our full analysis of the earnings results here, it's free.
Best Q3: Nova (NASDAQ:NVMI)
Headquartered in Israel, Nova (NASDAQ: NVMI) is a provider of quality control systems used in semiconductor manufacturing.
Nova reported revenues of $128.8 million, down 10.5% year on year, outperforming analyst expectations by 4.6%. It was a strong quarter for the company, with a significant improvement in its inventory levels and an impressive beat of analysts' EPS estimates.
Nova delivered the biggest analyst estimates beat among its peers. The stock is up 31.6% since the results and currently trades at $133.8.
Is now the time to buy Nova? Access our full analysis of the earnings results here, it's free.
IPG Photonics (NASDAQ:IPGP)
Both a designer and manufacturer of its products, IPG Photonics (NASDAQ:IPGP) is a provider of high-performance fiber lasers used for cutting, welding, and processing raw materials.
IPG Photonics reported revenues of $301.4 million, down 13.6% year on year, falling short of analyst expectations by 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 up 19.5% since the results and currently trades at $99.79.
Read our full analysis of IPG Photonics's results here.
Marvell Technology (NASDAQ:MRVL)
Moving away from a low margin storage device management chips in one of the biggest semiconductor business model pivots of the past decade, Marvell Technology (NASDAQ: MRVL) is a fabless designer of special purpose data processing and networking chips used by data centers, communications carriers, enterprises, and autos.
Marvell Technology reported revenues of $1.42 billion, down 7.7% year on year, surpassing analyst expectations by 1.3%. It was a weak quarter for the company, with underwhelming revenue guidance for the next quarter and a decline in its operating margin.
The stock is up 17.5% since the results and currently trades at $65.45.
Read our full, actionable report on Marvell Technology here, it's free.
Applied Materials (NASDAQ:AMAT)
Founded in 1967 as the first company to develop tools for other businesses in the semiconductor industry, Applied Materials (NASDAQ:AMAT) is the largest provider of semiconductor wafer fabrication equipment.
Applied Materials reported revenues of $6.72 billion, down 0.4% year on year, surpassing analyst expectations by 3.4%. It was a strong quarter for the company, with an impressive beat of analysts' EPS and revenue estimates.
The stock is down 2.2% since the results and currently trades at $151.25.
Read our full, actionable report on Applied Materials here, it's free.
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The author has no position in any of the stocks mentioned
