A Look Back at Analog Semiconductors Stocks' Q3 Earnings: onsemi (NASDAQ:ON) Vs The Rest Of The Pack

Looking back on analog semiconductors stocks’ Q3 earnings, we examine this quarter’s best and worst performers, including onsemi (NASDAQ:ON) 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 satisfactory Q3. As a group, revenues beat analysts’ consensus estimates by 0.8% while next quarter’s revenue guidance was 7,674% above.

Thankfully, share prices of the companies have been resilient as they are up 6.4% on average since the latest earnings results.

onsemi (NASDAQ:ON)

Spun out of Motorola in 1999 and built through a series of acquisitions, onsemi (NASDAQ:ON) is a global provider of analog chips specializing in autos, industrial applications, and power management in cloud data centers.

onsemi reported revenues of $1.55 billion, down 12% year on year. This print exceeded analysts’ expectations by 2.2%. Overall, it was a very strong quarter for the company with a beat of analysts’ EPS estimates and an impressive beat of analysts’ adjusted operating income estimates.

Interestingly, the stock is up 19.3% since reporting and currently trades at $60.49.

Is now the time to buy onsemi? Access our full analysis of the earnings results here, it’s free.

Best Q3: 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 $1.1 billion, up 7.3% year on year, outperforming analysts’ expectations by 5.4%. The business had a stunning quarter with a beat of analysts’ EPS estimates and revenue guidance for next quarter exceeding analysts’ expectations.

Although it had a fine quarter compared its peers, the market seems unhappy with the results as the stock is down 19.6% since reporting. It currently trades at $57.91.

Is now the time to buy Skyworks Solutions? Access our full analysis of the earnings results here, it’s free.

Weakest Q3: Universal Display (NASDAQ:OLED)

Serving major consumer electronics manufacturers, Universal Display (NASDAQ:OLED) is a provider of organic light emitting diode (OLED) technologies used in display and lighting applications.

Universal Display reported revenues of $139.6 million, down 13.6% year on year, falling short of analysts’ expectations by 15.9%. It was a disappointing quarter as it posted a significant miss of analysts’ revenue estimates and a significant miss of analysts’ adjusted operating income estimates.

Universal Display delivered the weakest performance against analyst estimates in the group. As expected, the stock is down 13.8% since the results and currently trades at $116.79.

Read our full analysis of Universal Display’s results here.

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 $4.74 billion, up 14.2% year on year. This result surpassed analysts’ expectations by 1.9%. Aside from that, it was a mixed quarter as it also logged a solid beat of analysts’ adjusted operating income estimates but revenue guidance for next quarter missing analysts’ expectations significantly.

The stock is up 5.5% since reporting and currently trades at $190.90.

Read our full, actionable report on Texas Instruments 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 $261.2 million, up 30.1% year on year. This print was in line with analysts’ expectations. More broadly, it was a mixed quarter as it also recorded revenue guidance for next quarter topping analysts’ expectations but an increase in its inventory levels.

MACOM achieved the fastest revenue growth among its peers. The stock is up 47.6% since reporting and currently trades at $220.95.

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

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