Q4 Analog Semiconductors Earnings Review: First Prize Goes to Skyworks Solutions (NASDAQ:SWKS)

The end of an earnings season can be a great time to discover new stocks and assess how companies are handling the current business environment. Let’s take a look at how Skyworks Solutions (NASDAQ:SWKS) and the rest of the analog semiconductors stocks fared in Q4.

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 14 analog semiconductors stocks we track reported a satisfactory Q4. As a group, revenues beat analysts’ consensus estimates by 0.8% while next quarter’s revenue guidance was 8,308% above.

In light of this news, share prices of the companies have held steady. On average, they are relatively unchanged since the latest earnings results.

Best Q4: 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 $1.04 billion, down 3.1% year on year. This print exceeded analysts’ expectations by 3.4%. Overall, it was an exceptional quarter for the company with a beat of analysts’ EPS estimates and an impressive beat of analysts’ adjusted operating income estimates.

“We delivered results above our expectations for the fourth consecutive quarter, with outperformance across revenue, gross margin, and non-GAAP earnings,” said Phil Brace, chief executive officer and president of Skyworks.

Skyworks Solutions pulled off the biggest analyst estimates beat of the whole group. Unsurprisingly, the stock is up 4.8% since reporting and currently trades at $58.60.

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

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 $3.16 billion, up 30.4% year on year, outperforming analysts’ expectations by 1.4%. The business had a very strong quarter with revenue guidance for next quarter exceeding analysts’ expectations and a beat of analysts’ EPS estimates.

Analog Devices pulled off the fastest revenue growth among its peers. The market seems content with the results as the stock is up 4.1% since reporting. It currently trades at $351.20.

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

Weakest Q4: 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 $800.9 million, up 12.1% year on year, exceeding analysts’ expectations by 0.7%. Still, it was a slower quarter as it posted a significant miss of analysts’ adjusted operating income estimates and EPS in line with analysts’ estimates.

As expected, the stock is down 7.7% since the results and currently trades at $19.15.

Read our full analysis of Vishay Intertechnology’s results here.

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 $1.19 billion, up 15.6% year on year. This number beat analysts’ expectations by 0.6%. Overall, it was a strong quarter as it also produced an impressive beat of analysts’ adjusted operating income estimates and a beat of analysts’ EPS estimates.

The stock is down 5.4% since reporting and currently trades at $73.81.

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

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 $92.85 million, up 1.4% year on year. This result met analysts’ expectations. However, it was a slower quarter as it recorded revenue guidance for next quarter missing analysts’ expectations significantly and EPS in line with analysts’ estimates.

The stock is down 20.4% since reporting and currently trades at $122.51.

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

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