Quarterly earnings results are a good time to check in on a company’s progress, especially compared to its peers in the same sector. Today we are looking at Skyworks Solutions (NASDAQ: SWKS) and the best and worst performers in the analog semiconductors industry.
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 mixed Q3. As a group, revenues beat analysts’ consensus estimates by 0.8% while next quarter’s revenue guidance was 3.2% below.
Amidst this news, share prices of the companies have had a rough stretch. On average, they are down 7% since the latest earnings results.
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 $1.02 billion, down 15.9% year on year. This print was in line with analysts’ expectations, but overall, it was a mixed quarter for the company with a significant improvement in its inventory levels but revenue guidance for next quarter missing analysts’ expectations.
“Skyworks’ fourth fiscal quarter revenue grew 13% sequentially, above the midpoint of our guidance,” said Liam K. Griffin, chairman, chief executive officer and president of Skyworks.
The market was likely pricing in the results, and the stock is flat since reporting. It currently trades at $87.95.
Read our full report on Skyworks Solutions here, it’s free.
Best Q3: Impinj (NASDAQ: PI)
Founded by Caltech professor Carver Mead and one of his students Chris Diorio, Impinj (NASDAQ: PI) is a maker of radio-frequency identification (RFID) hardware and software.
Impinj reported revenues of $95.2 million, up 46.4% year on year, outperforming analysts’ expectations by 2.5%. The business had a very strong quarter with a solid beat of analysts’ EPS estimates and an impressive beat of analysts’ adjusted operating income estimates.
Impinj pulled off the fastest revenue growth among its peers. Although it had a fine quarter compared to its peers, the market seems unhappy with the results as the stock is down 24.8% since reporting. It currently trades at $166.25.
Is now the time to buy Impinj? 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 $735.4 million, down 13.9% year on year, falling short of analysts’ expectations by 1.8%. It was a disappointing quarter as it posted full-year revenue guidance missing analysts’ expectations.
Vishay Intertechnology delivered the weakest full-year guidance update in the group. Interestingly, the stock is up 10% since the results and currently trades at $18.75.
Read our full analysis of Vishay Intertechnology’s results here.
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 specializing in autos, industrial applications, and power management in cloud data centers.
ON Semiconductor reported revenues of $1.76 billion, down 19.2% year on year. This print beat analysts’ expectations by 0.5%. More broadly, it was a mixed quarter as it also logged a decent beat of analysts’ adjusted operating income estimates but revenue guidance for next quarter slightly missing analysts’ expectations.
The stock is down 6.6% since reporting and currently trades at $66.51.
Read our full, actionable report on ON Semiconductor here, it’s free.
Texas Instruments (NASDAQ: TXN)
Headquartered in Dallas, Texas since the 1950s, Texas Instruments (NASDAQ: TXN) is the world’s largest producer of analog semiconductors.
Texas Instruments reported revenues of $4.15 billion, down 8.4% year on year. This number surpassed analysts’ expectations by 0.8%. It was a strong quarter as it also produced a solid beat of analysts’ adjusted operating income estimates and an impressive beat of analysts’ EPS estimates.
The stock is flat since reporting and currently trades at $192.65.
Read our full, actionable report on Texas Instruments here, it’s free.
Market Update
Thanks to the Fed's series of rate hikes in 2022 and 2023, inflation has cooled significantly from its post-pandemic highs, drawing closer to the 2% goal. This disinflation has occurred without severely impacting economic growth, suggesting the success of a soft landing. The stock market has thrived in 2024, spurred by recent rate cuts (0.5% in September and 0.25% in November), and a notable surge followed Donald Trump’s presidential election win in November, propelling indices to historic highs. Nonetheless, the outlook for 2025 remains clouded by potential trade policy changes and corporate tax discussions, which could impact business confidence and growth. The path forward holds both optimism and caution as new policies take shape.
Want to invest in winners with rock-solid fundamentals? Check out our Top 5 Quality Compounder Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.
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