Unpacking Q4 Earnings: MACOM (NASDAQ:MTSI) In The Context Of Other Analog Semiconductors Stocks
As the craze of earnings season draws to a close, here's a look back at some of the most exciting (and some less so) results from Q4. Today, we are looking at analog semiconductors stocks, starting with MACOM (NASDAQ:MTSI).
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 weaker Q4; on average, revenues were in line with analyst consensus estimates. while next quarter's revenue guidance was 3.6% below consensus. Investors abandoned cash-burning companies to buy stocks with higher margins of safety, but analog semiconductors stocks held their ground better than others, with the share prices up 2.5% on average since the previous earnings results.
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 $157.1 million, down 12.7% year on year, topping analyst expectations by 2.9%. It was a mixed quarter for the company, with optimistic revenue guidance for the next quarter but a decline in its operating margin.
“Q1 was a solid start to fiscal year 2024,” said Stephen G. Daly, President and Chief Executive Officer.
MACOM scored the biggest analyst estimates beat of the whole group. The stock is up 19.2% since the results and currently trades at $102.78.
Read our full report on MACOM here, it's free.
Best Q4: 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 $227.7 million, down 13.2% year on year, in line with analyst expectations. It was a very strong quarter for the company, with a significant improvement in its inventory levels.
The stock is down 4.7% since the results and currently trades at $5.38.
Is now the time to buy Himax? Access our full analysis of the earnings results here, it's free.
Weakest Q4: 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 $4.08 billion, down 12.7% year on year, falling short of analyst expectations by 1.4%. 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 down 0.3% since the results and currently trades at $173.82.
Read our full analysis of Texas Instruments's results here.
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 $1.20 billion, down 9.6% year on year, falling short of analyst expectations by 0.2%. It was a weaker quarter for the company, with a decline in its gross margin.
The stock is up 2.5% since the results and currently trades at $106.88.
Read our full, actionable report on Skyworks Solutions here, it's free.
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 $158.3 million, down 6.3% year on year, falling short of analyst expectations by 1.7%. It was a weaker quarter for the company, with full-year revenue guidance missing analysts' expectations and a miss of analysts' revenue estimates.
The stock is down 10.9% since the results and currently trades at $166.61.
Read our full, actionable report on Universal Display here, it's free.
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