Winners And Losers Of Q4: Western Digital (NASDAQ:WDC) Vs The Rest Of The Semiconductors Stocks

Wrapping up Q4 earnings, we look at the numbers and key takeaways for the semiconductors stocks, including Western Digital (NASDAQ:WDC) and its peers.

The semiconductor industry is driven by cyclical demand for advanced electronic products like smartphones, PCs, servers, and data storage. While analog chips serve as the building blocks of most electronic goods and equipment, processors (CPUs) and graphics chips serve as their brains. The growth of data and technologies like artificial intelligence, 5G, the Internet of Things, and smart cars are creating the next wave of secular growth for the industry.

The 40 semiconductors stocks we track reported a satisfactory Q4. As a group, revenues beat analysts’ consensus estimates by 1.7% while next quarter’s revenue guidance was above.

Amidst this news, share prices of the companies have had a rough stretch. On average, they are down 6.9% since the latest earnings results.

Western Digital (NASDAQ:WDC)

Founded in 1970 by a Motorola employee, Western Digital (NASDAQ: WDC) is a leading producer of hard disk drives, SSDs and flash memory.

Western Digital reported revenues of $4.29 billion, up 41.3% year on year. This print exceeded analysts’ expectations by 0.6%. Despite the top-line beat, it was still a slower quarter for the company with a significant miss of analysts’ EPS estimates and a miss of analysts’ adjusted operating income estimates.

“As we finalize the separation of our businesses, we are confident that both Western Digital and Sandisk will continue driving innovation and providing compelling storage solutions to customers while delivering long-term shareholder value,” said David Goeckeler, Western Digital CEO.

The stock is down 29.5% since reporting and currently trades at $44.27.

Read our full report on Western Digital 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 $237.2 million, up 4.2% year on year, outperforming analysts’ expectations by 7.3%. The business had a stunning quarter with a significant improvement in its inventory levels and a solid beat of analysts’ EPS estimates.

Although it had a fine quarter compared to its peers, the market seems unhappy with the results as the stock is down 6.9% since reporting. It currently trades at $8.49.

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

Weakest Q4: 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 $1.03 billion, down 41.9% year on year, falling short of analysts’ expectations by 1.8%. It was a disappointing quarter as it posted a significant miss of analysts’ adjusted operating income and EPS estimates.

Microchip Technology delivered the slowest revenue growth in the group. As expected, the stock is down 1.1% since the results and currently trades at $52.50.

Read our full analysis of Microchip Technology’s results here.

NXP Semiconductors (NASDAQ:NXPI)

Spun off from Dutch electronics giant Philips in 2006, NXP Semiconductors (NASDAQ: NXPI) is a designer and manufacturer of chips used in autos, industrial manufacturing, mobile devices, and communications infrastructure.

NXP Semiconductors reported revenues of $3.11 billion, down 9.1% year on year. This result met analysts’ expectations. More broadly, it was a mixed quarter as it also produced a narrow beat of analysts’ EPS estimates but an increase in its inventory levels.

The stock is flat since reporting and currently trades at $203.80.

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

AMD (NASDAQ:AMD)

Founded in 1969 by a group of former Fairchild semiconductor executives led by Jerry Sanders, Advanced Micro Devices (NASDAQ:AMD) is one of the leading designers of computer processors and graphics chips used in PCs and data centers.

AMD reported revenues of $7.66 billion, up 24.2% year on year. This print topped analysts’ expectations by 1.5%. However, it was a mixed quarter as it underperformed in some other aspects of the business.

The stock is down 9.6% since reporting and currently trades at $108.13.

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

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