Q3 Earnings Roundup: Magnachip (NYSE:MX) And The Rest Of The Analog Semiconductors Segment

As Q3 earnings season comes to a close, it’s time to take stock of this quarter's best and worst performers amongst the analog semiconductors stocks, including Magnachip (NYSE:MX) 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. Valuation multiples for growth stocks have reverted to their historical means after reaching highs in early 2021, but analog semiconductors stocks held their ground better than others, with the share prices up 20.4% on average since the previous earnings results.

Magnachip (NYSE:MX)

With its technology found in common consumer electronics such as TVs and smartphones, Magnachip Semiconductor (NYSE:MX) is a provider of analog and mixed-signal semiconductors.

Magnachip reported revenues of $61.25 million, down 14% year on year, falling short of analyst expectations by 1%. It was a weaker quarter for the company, with underwhelming revenue guidance for the next quarter and a decline in its operating margin.

YJ Kim, Magnachip's Chief Executive Officer commented, "Our Q3 results were in-line with our guidance. In our Display business, we have completed the qualification of two DDI chips at our new tier 1 panel maker and are going through the qualification process with two smartphone makers. We are now working on additional Driver ICs that cover broader segments of the smartphone market to include mass market smartphones in addition to the premium models. Despite near-term market challenges, our outlook for long-term growth remains positive. Our confidence is driven by our strong belief that our display products offer distinct competitive advantages that position us well for success in the rapidly growing OLED market in Asia."

The stock is down 9.7% since the results and currently trades at $7.02.

Read our full report on Magnachip 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 55.9% since the results and currently trades at $629.34.

Is now the time to buy Monolithic Power Systems? Access our full analysis of the earnings results here, it's free.

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  and EPS estimates.

Power Integrations had the slowest revenue growth in the group. The stock is up 9.4% since the results and currently trades at $82.25.

Read our full analysis of Power Integrations'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 $2.25 billion, up 8.7% year on year, falling short of analyst expectations by 0.5%. 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 22.2% since the results and currently trades at $89.94.

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

ON Semiconductor (NASDAQ:ON)

Spun out of Motorola in 1999 and built through a series of acquisitions, ON Semiconductor (NASDAQ:ON) is a global provider of analog chips specializing in autos, industrial applications, and power management in cloud data centers.

ON Semiconductor reported revenues of $2.18 billion, down 0.5% year on year, surpassing analyst expectations by 1.5%. It was a slower quarter for the company, with underwhelming revenue guidance for the next quarter and a decline in its operating margin.

The stock is down 10.1% since the results and currently trades at $75.11.

Read our full, actionable report on ON Semiconductor here, it's free.

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The author has no position in any of the stocks mentioned