ON Semiconductor (NASDAQ:ON) Q4 Earnings: Leading The Analog Semiconductors Pack

As Q4 earnings season comes to a close, it’s time to take stock of this quarter's best and worst performers amongst the analog semiconductors stocks, including ON Semiconductor (NASDAQ:ON) 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 weaker Q4; on average, revenues beat analyst consensus estimates by 1.69%, while on average next quarter revenue guidance was 2.68% under consensus. Tech stocks have been hit the hardest as investors start to value profits over growth , but analog semiconductors stocks held their ground better than others, with share prices down 1.92% since the previous earnings results, on average.

Best Q4: ON Semiconductor (NASDAQ:ON)

Spun out of Motorola in 1999, and built through a series of acquisitions, ON Semiconductor (NASDAQ: ON) is a global provider of analog chips with specialization in autos, industrial applications, and power management in cloud data centers.

ON Semiconductor reported revenues of $2.1 billion, up 8.15% year on year, beating analyst expectations by 5.32%. It was a mixed quarter for the company, with a beat on the bottom line but underwhelming revenue guidance for the next quarter.

“We delivered outstanding results in 2022 as we continue our disciplined execution and transformation. Revenue for 2022 grew by 24%, non-GAAP gross margin expanded by 880 bps, and non-GAAP operating income grew four times faster than revenue driven by our focus on the secular megatrends of electric vehicles, ADAS, alternative energy and industrial automation. We are focused on our key strategic initiatives such as ramping silicon carbide in support of our long-term supply agreements. Despite the current macroeconomic uncertainty, the long-term outlook for our business remains robust with a 38% year-over-year increase in our design win funnel,” said Hassane El-Khoury, President and CEO of onsemi.

The stock is down 3.18% since the results and currently trades at $78.26.

Is now the time to buy ON Semiconductor? Access our full analysis of the earnings results here, it's free.

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 $855.3 million, up 1.45% year on year, missing analyst expectations by 3.1%. It was a weak quarter for the company, with underwhelming revenue guidance for the next quarter and a miss of the top line analyst estimates.

Vishay Intertechnology had the weakest performance against analyst estimates among its peers. The stock is down 12.5% since the results and currently trades at $21.

Is now the time to buy Vishay Intertechnology? Access our full analysis of the earnings results here, it's free.

Weakest Q4: Magnachip (NYSE:MX)

With its technology found in common consumer electronics such as TVs and smartphones, Magnachip Semiconductor (NYSE:MX) is a provider of analog and mixed-signal semiconductors.

Magnachip reported revenues of $61 million, down 44.7% year on year, beating analyst expectations by 2.22%. It was a weak quarter for the company, with declining revenue and underwhelming sales guidance for the next quarter.

Magnachip had the slowest revenue growth in the group. The stock is down 13% since the results and currently trades at $8.94.

Read our full analysis of Magnachip's results here.

Microchip Technology (NASDAQ:MCHP)

Spun out from General Instrument in 1987, Microchip Technology (NASDAQ: MCHP) is a leading provider of microcontrollers and integrated circuits used mainly in the automotive world, especially in electric vehicles and their charging devices.

Microchip Technology reported revenues of $2.17 billion, up 23.4% year on year, in line with analyst expectations. It was a mixed quarter for the company, with a meaningful improvement in gross margin but an increase in inventory levels.

The stock is down 4.56% since the results and currently trades at $80.7.

Read our full, actionable report on Microchip Technology here, it's free.

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 $1.33 billion, down 12% year on year, in line with analyst expectations. It was a weak quarter for the company, with declining revenue and underwhelming sales guidance for the next quarter.

The stock is up 3.33% since the results and currently trades at $112.99.

Read our full, actionable report on Skyworks Solutions here, it's free.

The author has no position in any of the stocks mentioned