As the Q4 earnings season comes to a close, it’s time to take stock of this quarter’s best and worst performers in the semiconductor manufacturing industry, including Photronics (NASDAQ: PLAB) 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 16.4% since the latest earnings results.
Photronics (NASDAQ: PLAB)
Sporting a global footprint of facilities, Photronics (NASDAQ: PLAB) is a manufacturer of photomasks, templates used to transfer patterns onto semiconductor wafers.
Photronics reported revenues of $212.1 million, down 1.9% year on year. This print exceeded analysts’ expectations by 1%. Despite the top-line beat, it was still a mixed quarter for the company with an impressive beat of analysts’ EPS estimates but revenue guidance for next quarter missing analysts’ expectations significantly.
“We achieved top-line results in line with our expectations and reflective of seasonal demand patterns,” said Frank Lee, chief executive officer.
Unsurprisingly, the stock is down 2.9% since reporting and currently trades at $20.12.
Is now the time to buy Photronics? 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 23.5% since reporting. It currently trades at $33.20.
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 32.3% since the results and currently trades at $27.83.
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 result beat analysts’ expectations by 2.3%. Overall, it was a very strong quarter as it also produced a significant improvement in its inventory levels and an impressive beat of analysts’ adjusted operating income estimates.
Nova pulled off the fastest revenue growth among its peers. The stock is down 24.5% since reporting and currently trades at $185.50.
Read our full, actionable report on Nova here, it’s free.
Semtech (NASDAQ: SMTC)
A public company since the late 1960s, Semtech (NASDAQ: SMTC) is a provider of analog and mixed-signal semiconductors used for Internet of Things systems and cloud connectivity.
Semtech reported revenues of $251 million, up 30.1% year on year. This number met analysts’ expectations. It was a strong quarter as it also logged a solid beat of analysts’ EPS estimates and an impressive beat of analysts’ adjusted operating income estimates.
The stock is up 6.8% since reporting and currently trades at $34.86.
Read our full, actionable report on Semtech here, it’s free.
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