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Winners And Losers Of Q4: Analog Devices (NASDAQ:ADI) Vs The Rest Of The Analog Semiconductors Stocks

ADI Cover Image

The end of the earnings season is always a good time to take a step back and see who shined (and who not so much). Let’s take a look at how analog semiconductors stocks fared in Q4, starting with Analog Devices (NASDAQ: ADI).

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 satisfactory Q4. As a group, revenues beat analysts’ consensus estimates by 0.8% while next quarter’s revenue guidance was above.

In light of this news, share prices of the companies have held steady. On average, they are relatively unchanged since the latest earnings results.

Analog Devices (NASDAQ: ADI)

Founded by two MIT graduates, Ray Stata and Matthew Lorber in 1965, Analog Devices (NASDAQ: ADI) is one of the largest providers of high performance analog integrated circuits used mainly in industrial end markets, along with communications, autos, and consumer devices.

Analog Devices reported revenues of $3.16 billion, up 30.4% year on year. This print exceeded analysts’ expectations by 1.4%. Overall, it was a very strong quarter for the company with revenue guidance for next quarter exceeding analysts’ expectations and a beat of analysts’ EPS estimates.

"ADI's robust first quarter built upon the strong position and momentum with which we entered the year," said Vincent Roche, CEO and Chair.

Analog Devices Total Revenue

Analog Devices pulled off the fastest revenue growth of the whole group. Unsurprisingly, the stock is up 5.4% since reporting and currently trades at $355.78.

Is now the time to buy Analog Devices? Access our full analysis of the earnings results here, it’s free.

Best Q4: 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 $1.04 billion, down 3.1% year on year, outperforming analysts’ expectations by 3.4%. The business had an exceptional quarter with a beat of analysts’ EPS estimates and an impressive beat of analysts’ adjusted operating income estimates.

Skyworks Solutions Total Revenue

Skyworks Solutions achieved the biggest analyst estimates beat among its peers. The market seems happy with the results as the stock is up 6.9% since reporting. It currently trades at $59.81.

Is now the time to buy Skyworks Solutions? Access our full analysis of the earnings results here, it’s free.

Weakest Q4: 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 $172.9 million, up 6.6% year on year, in line with analysts’ expectations. It was a mixed quarter as it posted a beat of analysts’ EPS estimates but full-year revenue guidance missing analysts’ expectations significantly.

As expected, the stock is down 11.9% since the results and currently trades at $103.13.

Read our full analysis of Universal Display’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 $271.6 million, up 24.5% year on year. This print surpassed analysts’ expectations by 1%. It was a strong quarter as it also logged revenue guidance for next quarter topping analysts’ expectations and a solid beat of analysts’ adjusted operating income estimates.

The stock is up 14.2% since reporting and currently trades at $245.46.

Read our full, actionable report on MACOM here, it’s free.

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 $751.2 million, up 20.8% year on year. This number beat analysts’ expectations by 1.2%. More broadly, it was a satisfactory quarter as it also recorded revenue guidance for next quarter exceeding analysts’ expectations but an increase in its inventory levels.

The stock is up 3.3% since reporting and currently trades at $1,194.

Read our full, actionable report on Monolithic Power Systems here, it’s free.

Want to invest in winners with rock-solid fundamentals? Check out our Top 6 Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.

StockStory’s analyst team — all seasoned professional investors — uses quantitative analysis and automation to deliver market-beating insights faster and with higher quality.

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