Investors in lots of semiconductor shares are performing like nation singer Shania Twain in terms of first-quarter earnings. Their response to a number of beat-and-raise studies has been, “That don’t impress me much.”
Advanced Micro Devices (AMD), NXP Semiconductors (NXPI) and Silicon Labs (SLAB) are among the many firms which have seen their shares fall. The declines got here regardless of beating Wall Street’s March-quarter estimates and guiding greater this week. Other semiconductor shares that swooned after beat-and-raise studies this week embrace Texas Instruments (TXN) and Macom Technology Solutions (MTSI).
Semiconductor shares have fallen out of favor with traders. IBD’s fabless semiconductor trade group ranks No. 165 out of 197 teams that IBD tracks. Six months in the past, it ranked No. 15. IBD’s semiconductor manufacturing group ranks No. 117, vs. No. 69 six months in the past.
The newest of the semiconductor shares to take a post-earnings tumble is Skyworks Solutions (SWKS).
Also, late Thursday, Skyworks reported fiscal second-quarter results that beat estimates and it guided barely greater for the present quarter.
In afternoon buying and selling on the stock market today, Skyworks inventory was down 7.8%, close to 182.45.
Power Integrations Stock Bucks Trend
Meanwhile, Power Integrations (POWI) noticed its shares drop in early buying and selling Friday earlier than they rebounded. POWI inventory was up 0.6%, close to 84.55, in afternoon buying and selling. It posted a strong beat-and-raise report late Thursday.
San Jose, Calif.-based Power Integrations earned an adjusted 76 cents a share on gross sales of $173.7 million within the first quarter. Analysts anticipated earnings of 56 cents a share on gross sales of $149.5 million. On a year-over 12 months foundation, Power Integrations earnings rose 100% whereas gross sales elevated 58%.
Further, for the present quarter, the corporate forecast flat gross sales on a sequential foundation. That would translate to 63% development 12 months over 12 months. Wall Street had predicted $140.7 million in second-quarter gross sales. Power Integrations makes energy conversion and administration chips.
Semiconductor Stocks: Cirrus Logic Disappoints
Elsewhere amongst semiconductor shares, Cirrus Logic (CRUS) was a uncommon poor performer within the March quarter. The audio-chip maker launched its quarterly outcomes late Thursday.
Austin, Texas-based Cirrus Logic earned an adjusted 66 cents a share on gross sales of $293.5 million in its fiscal fourth quarter ended March 27. Analysts anticipated earnings of 71 cents a share on gross sales of $302.5 million. On a year-over-year foundation, Cirrus Logic earnings fell 3% whereas gross sales rose 5%.
Additionally, for the present quarter, Cirrus Logic expects to generate $260 million in gross sales, primarily based on the midpoint of its outlook. Wall Street was searching for $282.7 million.
Semiconductor shares analyst Matthew Ramsay with Cowen known as Cirrus Logic’s shocking miss “painful.”
Cirrus Logic inventory plummeted 16.5%, close to 72.05, in afternoon buying and selling Friday.
Follow Patrick Seitz on Twitter at @IBD_PSeitz for extra tales on shopper expertise, software program and semiconductor shares.
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