Analog Semiconductors Stocks Q4 In Review: Monolithic Power Systems (NASDAQ:MPWR) Vs Peers

Quarterly earnings results are a good time to check in on a company’s progress, especially compared to other peers in the same sector. Today we are looking at Monolithic Power Systems (NASDAQ:MPWR), and the best and worst performers in the analog semiconductors group.

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. Inflation (despite slowing) has investors prioritizing near-term cash flows, but analog semiconductors stocks held their ground better than others, with the share prices up 0.7% on average since the previous 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 $454 million, down 1.3% 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.

“While we continue to be cautious about near-term business conditions, we believe our long-term growth strategy remains intact, and we can swiftly adapt to market changes as they occur,” said Michael Hsing, CEO and founder of MPS.

The stock is up 3.6% since the results and currently trades at $668.36.

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 $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 3.3% since the results and currently trades at $5.46.

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 0.7% since the results and currently trades at $173.17.

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 $992.5 million, down 2.2% year on year, surpassing analyst expectations by 1.4%. It was a weak quarter for the company, with a miss of analysts' EPS estimates and a decline in its gross margin.

The stock is up 0.9% since the results and currently trades at $36.46.

Read our full, actionable report on Sensata Technologies here, it's free.

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 $2.51 billion, down 22.7% year on year, in line with analyst expectations. It was a weak quarter for the company, with underwhelming revenue guidance for the next quarter and a decline in its gross margin.

The stock is up 2.9% since the results and currently trades at $194.88.

Read our full, actionable report on Analog Devices here, it's free.

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