Unpacking Q3 Earnings: Skyworks Solutions (NASDAQ:SWKS) In The Context Of Other Analog Semiconductors Stocks

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Unpacking Q3 Earnings: Skyworks Solutions (NASDAQ:SWKS) In The Context Of Other Analog Semiconductors Stocks

Quarterly earnings results are a good time to check in on a company’s progress, especially compared to its peers in the same sector. Today we are looking at Skyworks Solutions (NASDAQ:SWKS) and the best and worst performers in the analog semiconductors industry.

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 7% since the latest earnings results.

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 $1.02 billion, down 15.9% year on year. This print was in line with analysts’ expectations, but overall, it was a mixed quarter for the company with a significant improvement in its inventory levels but revenue guidance for next quarter missing analysts’ expectations.

“Skyworks’ fourth fiscal quarter revenue grew 13% sequentially, above the midpoint of our guidance,” said Liam K. Griffin, chairman, chief executive officer and president of Skyworks.

Skyworks Solutions Total Revenue
Skyworks Solutions Total Revenue

The market was likely pricing in the results, and the stock is flat since reporting. It currently trades at $87.95.

Read our full report on Skyworks Solutions 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 Total Revenue
Impinj Total Revenue

Impinj pulled off the fastest revenue growth among its peers. Although it had a fine quarter compared to its peers, the market seems unhappy with the results as the stock is down 24.8% since reporting. It currently trades at $166.25.