In This Article:
As the Q3 earnings season wraps, let’s dig into this quarter’s best and worst performers in the analog semiconductors industry, including MACOM (NASDAQ:MTSI) 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 mixed Q3. As a group, revenues beat analysts’ consensus estimates by 0.8% while next quarter’s revenue guidance was 3.2% below.
Amidst this news, share prices of the companies have had a rough stretch. On average, they are down 9.4% since the latest earnings results.
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 $200.7 million, up 33.5% year on year. This print was in line with analysts’ expectations, but overall, it was a mixed quarter for the company with revenue guidance for next quarter beating analysts’ expectations but a miss of analysts’ adjusted operating income estimates.
“Our team continues to identify opportunities to expand our customer base and gain share with our leading products and technologies,” said Stephen G. Daly, President and Chief Executive Officer.
Interestingly, the stock is up 8.5% since reporting and currently trades at $132.49.
Read our full report on MACOM here, it’s free.
Best Q3: 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 $95.2 million, up 46.4% year on year, outperforming analysts’ expectations by 2.5%. The business had a very strong quarter with a solid beat of analysts’ EPS estimates and an impressive beat of analysts’ adjusted operating income estimates.
Impinj pulled off the fastest revenue growth among its peers. Although it had a fine quarter compared its peers, the market seems unhappy with the results as the stock is down 36.6% since reporting. It currently trades at $140.11.
Is now the time to buy Impinj? Access our full analysis of the earnings results here, it’s free.