Q4 Earnings Highlights: Seagate (NASDAQ:STX) Vs The Rest Of The Semiconductors Stocks

As the Q4 earnings season wraps, let’s dig into this quarter’s best and worst performers in the semiconductors industry, including Seagate (NASDAQ:STX) and its peers.

The semiconductor industry is driven by cyclical demand for advanced electronic products like smartphones, PCs, servers, and data storage. While analog chips serve as the building blocks of most electronic goods and equipment, processors (CPUs) and graphics chips serve as their brains. The growth of data and technologies like artificial intelligence, 5G, the Internet of Things, and smart cars are creating the next wave of secular growth for the industry.

The 40 semiconductors stocks we track reported a strong Q4. As a group, revenues beat analysts’ consensus estimates by 2% while next quarter’s revenue guidance was 5,393% above.

Amidst this news, share prices of the companies have had a rough stretch. On average, they are down 6.3% since the latest earnings results.

Seagate (NASDAQ:STX)

One of two remaining major hard drive manufacturers after decades of industry consolidation, Seagate (NASDAQ:STX) manufactures hard disk drives and solid state drives that store data in data centers, cloud systems, and consumer devices.

Seagate reported revenues of $2.83 billion, up 21.5% year on year. This print exceeded analysts’ expectations by 2.6%. 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.

Unsurprisingly, the stock is down 5.5% since reporting and currently trades at $351.45.

We think Seagate is a good business, but is it a buy today? Read our full report here, it’s free.

Best Q4: 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 $1.08 billion, up 43.9% year on year, outperforming analysts’ expectations by 11%. The business had an incredible quarter with a significant improvement in its inventory levels and a beat of analysts’ EPS estimates.

Teradyne delivered the biggest analyst estimates beat among its peers. The market seems happy with the results as the stock is up 9.3% since reporting. It currently trades at $272.62.

Is now the time to buy Teradyne? 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 19.7% since the results and currently trades at $16.66.

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

KLA Corporation (NASDAQ:KLAC)

Formed by the 1997 merger of the two leading semiconductor yield management companies, KLA Corporation (NASDAQ:KLAC) is the leading supplier of equipment used to measure and inspect semiconductor chips.

KLA Corporation reported revenues of $3.30 billion, up 7.2% year on year. This number topped analysts’ expectations by 1.3%. Overall, it was a strong quarter as it also put up a decent beat of analysts’ adjusted operating income estimates and revenue guidance for next quarter topping analysts’ expectations.

The stock is down 20.8% since reporting and currently trades at $1,334.

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

Amkor (NASDAQ:AMKR)

Operating through a largely Asian facility footprint, Amkor Technologies (NASDAQ:AMKR) provides outsourced packaging and testing for semiconductors.

Amkor reported revenues of $1.89 billion, up 15.9% year on year. This print surpassed analysts’ expectations by 3%. It was an exceptional quarter as it also recorded a beat of analysts’ EPS estimates and a solid beat of analysts’ adjusted operating income estimates.

The stock is down 20.5% since reporting and currently trades at $41.74.

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

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