Looking back on semiconductor manufacturing stocks’ Q4 earnings, we examine this quarter’s best and worst performers, including Teradyne (NASDAQ: TER) and its peers.
The semiconductor industry is driven by demand for advanced electronic products like smartphones, PCs, servers, and data storage. The need for technologies like artificial intelligence, 5G networks, and smart cars is also creating the next wave of growth for the industry. Keeping up with this dynamism requires new tools that can design, fabricate, and test chips at ever smaller sizes and more complex architectures, creating a dire need for semiconductor capital manufacturing equipment.
The 14 semiconductor manufacturing stocks we track reported a satisfactory Q4. As a group, revenues beat analysts’ consensus estimates by 1.6% while next quarter’s revenue guidance was 1.8% below.
Amidst this news, share prices of the companies have had a rough stretch. On average, they are down 9.1% since the latest earnings results.
Teradyne (NASDAQ: TER)
Sporting most major chip manufacturers as its customers, Teradyne (NASDAQ: TER) is a US-based supplier of automated test equipment for semiconductors as well as other technologies and devices.
Teradyne reported revenues of $752.9 million, up 12.3% year on year. This print exceeded analysts’ expectations by 1.4%. Despite the top-line beat, it was still a mixed quarter for the company with a solid beat of analysts’ EPS estimates but a miss of analysts’ adjusted operating income estimates.
“Our Q4 results were toward the high end of our guidance range, driven by demand in our Semi Test business. For the quarter, AI compute and related memory remained strong while Mobile and Auto/Industrial exceeded our expectations,” said Teradyne CEO, Greg Smith.
The stock is down 26.5% since reporting and currently trades at $89.73.
Is now the time to buy Teradyne? Access our full analysis of the earnings results here, it’s free.
Best Q4: Kulicke and Soffa (NASDAQ: KLIC)
Headquartered in Singapore, Kulicke & Soffa (NASDAQ: KLIC) is a provider of production equipment and tools used to assemble semiconductor devices
Kulicke and Soffa reported revenues of $166.1 million, down 3% year on year, outperforming analysts’ expectations by 0.7%. The business had a very strong 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 16.8% since reporting. It currently trades at $36.13.
Is now the time to buy Kulicke and Soffa? Access our full analysis of the earnings results here, it’s free.
Weakest Q4: FormFactor (NASDAQ: FORM)
With customers across the foundry and fabless markets, FormFactor (NASDAQ: FORM) is a US-based provider of test and measurement technologies for semiconductors.
FormFactor reported revenues of $189.5 million, up 12.7% year on year, in line with analysts’ expectations. It was a softer quarter as it posted a significant miss of analysts’ adjusted operating income and EPS estimates.
As expected, the stock is down 19.3% since the results and currently trades at $33.19.
Read our full analysis of FormFactor’s results here.
Nova (NASDAQ: NVMI)
Headquartered in Israel, Nova (NASDAQ: NVMI) is a provider of quality control systems used in semiconductor manufacturing.
Nova reported revenues of $194.8 million, up 45.1% year on year. This number topped analysts’ expectations by 2.3%. Overall, it was a very strong quarter as it also recorded a significant improvement in its inventory levels and an impressive beat of analysts’ adjusted operating income estimates.
Nova scored the fastest revenue growth among its peers. The stock is down 19.6% since reporting and currently trades at $197.70.
Read our full, actionable report on Nova here, it’s free.
KLA Corporation (NASDAQ: KLAC)
Formed by the 1997 merger of the two leading semiconductor yield management companies, KLA Corporation (NASDAQ: KLAC) is the leading supplier of equipment used to measure and inspect semiconductor chips.
KLA Corporation reported revenues of $3.08 billion, up 23.7% year on year. This result beat analysts’ expectations by 4.5%. It was a very strong quarter as it also put up a significant improvement in its inventory levels and an impressive beat of analysts’ adjusted operating income estimates.
The stock is down 3.8% since reporting and currently trades at $715.
Read our full, actionable report on KLA Corporation here, it’s free.
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