The end of an earnings season can be a great time to discover new stocks and assess how companies are handling the current business environment. Let’s take a look at how Monolithic Power Systems (NASDAQ:MPWR) and the rest of the analog semiconductors stocks fared in Q4.
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 14 analog semiconductors stocks we track reported a mixed Q4. As a group, revenues beat analysts’ consensus estimates by 1.7% while next quarter’s revenue guidance was above.
In light of this news, share prices of the companies have held steady as they are up 3% on average since the latest earnings results.
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 $621.7 million, up 36.9% year on year. This print exceeded analysts’ expectations by 2.3%. Overall, it was a satisfactory quarter for the company with a decent beat of analysts’ EPS estimates.
“Our proven, long-term growth strategy remains intact as we continue our transformation from being a chip-only, semiconductor supplier to a full service, silicon-based solutions provider,” said Michael Hsing, CEO and founder of MPS.
The market was likely pricing in the results, and the stock is flat since reporting. It currently trades at $663.50.
Is now the time to buy Monolithic Power Systems? Access our full analysis of the earnings results 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 $237.2 million, up 4.2% year on year, outperforming analysts’ expectations by 7.3%. The business had an incredible quarter with a significant improvement in its inventory levels and a solid beat of analysts’ EPS estimates.
The market seems happy with the results as the stock is up 16.3% since reporting. It currently trades at $10.61.
Is now the time to buy Himax? Access our full analysis of the earnings results here, it’s free .
Slowest 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 $714.7 million, down 9% year on year, falling short of analysts’ expectations by 1.1%. It was a disappointing quarter as it posted a significant miss of analysts’ adjusted operating income estimates and a significant miss of analysts’ EPS estimates.
Interestingly, the stock is up 12.2% since the results and currently trades at $18.63.
Read our full analysis of Vishay Intertechnology’s results here.
NXP Semiconductors (NASDAQ:NXPI)
Spun off from Dutch electronics giant Philips in 2006, NXP Semiconductors (NASDAQ: NXPI) is a designer and manufacturer of chips used in autos, industrial manufacturing, mobile devices, and communications infrastructure.
NXP Semiconductors reported revenues of $3.11 billion, down 9.1% year on year. This print was in line with analysts’ expectations. Taking a step back, it was a mixed quarter as it also logged a narrow beat of analysts’ EPS estimates but an increase in its inventory levels.
The stock is up 15.5% since reporting and currently trades at $236.38.
Read our full, actionable report on NXP Semiconductors here, it’s free.
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 $105.3 million, up 17.6% year on year. This number met analysts’ expectations. However, it was a slower quarter as it produced revenue guidance for next quarter missing analysts’ expectations significantly and an increase in its inventory levels.
The stock is up 6.6% since reporting and currently trades at $64.75.
Read our full, actionable report on Power Integrations here, it’s free.
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