Q3 Earnings Outperformers: Power Integrations (NASDAQ:POWI) And The Rest Of The Analog Semiconductors Stocks
Looking back on analog semiconductors stocks' Q3 earnings, we examine this quarter's best and worst performers, including Power Integrations (NASDAQ:POWI) 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 weak Q3; on average, revenues were in line with analyst consensus estimates while next quarter's revenue guidance was 8% below consensus. Stocks have faced challenges as investors prioritize near-term cash flows, but analog semiconductors stocks held their ground better than others, with the share prices up 12.4% on average since the previous earnings results.
Weakest Q3: Power Integrations (NASDAQ:POWI)
A leading supplier of parts for electronics such as home appliances, Power Integrations (NASDAQ:POWI) is a semiconductor designer and developer specializing in products used for high-voltage power conversion.
Power Integrations reported revenues of $125.5 million, down 21.7% year on year, falling short of analyst expectations by 3.7%. It was a weak quarter for the company, with underwhelming revenue guidance for the next quarter and a miss of analysts' revenue estimates.
Power Integrations delivered the slowest revenue growth of the whole group. The stock is up 2.2% since the results and currently trades at $76.89.
Is now the time to buy Power Integrations? Access our full analysis of the earnings results here, it's free.
Best Q3: Monolithic Power Systems (NASDAQ:MPWR)
Founded in 1997 by its longtime CEO Michael Hsing, Monolithic Power Systems (NASDAQ:MPWR) is an analog and mixed signal chipmaker that specializes in power management chips meant to minimize total energy consumption.
Monolithic Power Systems reported revenues of $474.9 million, down 4.1% year on year, in line with analyst expectations. It was a mixed quarter for the company, with a significant improvement in its inventory levels but a decline in its gross margin.
The stock is up 45.9% since the results and currently trades at $589.
Is now the time to buy Monolithic Power Systems? Access our full analysis of the earnings results here, it's free.
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 $4.53 billion, down 13.5% year on year, falling short of analyst expectations by 1.2%. 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 up 12.1% since the results and currently trades at $164.65.
Read our full analysis of Texas Instruments's results here.
Sensata Technologies (NYSE:ST)
Originally a temperature sensor control maker and a subsidiary of Texas Instruments for 60 years, Sensata Technology Holdings (NYSE: ST) is a leading supplier of analog sensors used in industrial and transportation applications, best known for its dominant position in the tire pressure monitoring systems in cars.
Sensata Technologies reported revenues of $1.00 billion, down 1.7% year on year, falling short of analyst expectations by 0.4%. It was a weaker quarter for the company, with underwhelming revenue guidance for the next quarter and an increase in its inventory levels.
The stock is down 0.1% since the results and currently trades at $34.06.
Read our full, actionable report on Sensata Technologies 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 $65.01 million, down 4.8% year on year, in line with analyst expectations. It was a mixed quarter for the company, with a decline in its operating margin, though EPS exceeded expectations. Next quarter's revenue guidance was raised and came in higher than Wall Street's estimates. In fact, the full year outlook for all major line items was raised and came in above Consensus, making for a nice "beat and raise" quarter.
The stock is up 58.7% since the results and currently trades at $78.88.
Read our full, actionable report on Impinj here, it's free.
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The author has no position in any of the stocks mentioned
