Q2 Earnings Highlights: Micron Technology (NASDAQ:MU) Vs The Rest Of The Semiconductors Stocks
Earnings results often indicate what direction a company will take in the months ahead. With Q2 behind us, let’s have a look at Micron Technology (NASDAQ:MU) 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, Internet of Things, and smart cars are creating the next wave of secular growth for the industry.
The 41 semiconductors stocks we track reported a mixed Q2. As a group, revenues beat analysts’ consensus estimates by 1.3% while next quarter’s revenue guidance was 4.4% below.
Stocks--especially those trading at higher multiples--had a strong end of 2023, but this year has seen periods of volatility. Mixed signals about inflation have led to uncertainty around rate cuts, and semiconductors stocks have had a rough stretch. On average, share prices are down 9.4% since the latest earnings results.
Micron Technology (NASDAQ:MU)
Founded in the basement of a Boise, Idaho dental office in 1978, Micron (NYSE:MU) is a leading provider of memory chips used in thousands of devices across mobile, data centers, industrial, consumer, and automotive markets.
Micron Technology reported revenues of $6.81 billion, up 81.5% year on year. This print exceeded analysts’ expectations by 2%. Overall, it was an exceptional quarter for the company with a significant improvement in its gross margin and an impressive beat of analysts’ EPS estimates.
The stock is down 39.3% since reporting and currently trades at $86.50.
Is now the time to buy Micron Technology? Access our full analysis of the earnings results here, it’s free.
Best Q2: 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 $239.6 million, up 2% year on year, outperforming analysts’ expectations by 2.9%. The business had an exceptional quarter with a significant improvement in its gross margin.
Although it had a fine quarter compared its peers, the market seems unhappy with the results as the stock is down 8.5% since reporting. It currently trades at $5.36.
Is now the time to buy Himax? Access our full analysis of the earnings results here, it’s free.
Weakest Q2: Lattice Semiconductor (NASDAQ:LSCC)
A global leader in its category, Lattice Semiconductor (NASDAQ:LSCC) is a semiconductor designer specializing in customer-programmable chips that enhance CPU performance for intensive tasks such as machine learning.
Lattice Semiconductor reported revenues of $124.1 million, down 34.7% year on year, falling short of analysts’ expectations by 4.7%. It was a disappointing quarter as it posted underwhelming revenue guidance for the next quarter and a decline in its operating margin.
As expected, the stock is down 22.7% since the results and currently trades at $42.45.
Read our full analysis of Lattice Semiconductor’s results here.
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 $190.5 million, up 28.3% year on year. This number met analysts’ expectations. More broadly, it was an exceptional quarter as it produced a decline in its gross margin and an increase in its inventory levels.
The stock is down 4.5% since reporting and currently trades at $96.55.
Read our full, actionable report on MACOM here, it’s free.
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 $729.9 million, up 6.6% year on year. This print surpassed analysts’ expectations by 4.1%. It was a strong quarter as it also produced a significant improvement in its inventory levels and an impressive beat of analysts’ EPS estimates.
The stock is down 12.5% since reporting and currently trades at $125.24.
Read our full, actionable report on Teradyne here, it’s free.
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