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 NXP Semiconductors (NASDAQ: NXPI) 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 satisfactory Q2. As a group, revenues beat analysts’ consensus estimates by 2% while next quarter’s revenue guidance was in line.
In light of this news, share prices of the companies have held steady as they are up 2.1% on average since the latest earnings results.
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 $2.93 billion, down 6.4% year on year. This print exceeded analysts’ expectations by 0.8%. Despite the top-line beat, it was still a mixed quarter for the company with a beat of analysts’ EPS estimates but revenue guidance for next quarter meeting analysts’ expectations.
Unsurprisingly, the stock is down 1.3% since reporting and currently trades at $225.55.
Is now the time to buy NXP Semiconductors? Access our full analysis of the earnings results here, it’s free.
Best Q2: 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 $97.89 million, down 4.5% year on year, outperforming analysts’ expectations by 4.3%. The business had an exceptional quarter with a significant improvement in its inventory levels and a beat of analysts’ EPS estimates.
The market seems happy with the results as the stock is up 64.5% since reporting. It currently trades at $201.49.
Is now the time to buy Impinj? Access our full analysis of the earnings results here, it’s free.
Weakest Q2: 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 $214.8 million, down 10.4% year on year, exceeding analysts’ expectations by 1.3%. Still, it was a softer quarter as it posted EPS in line with analysts’ estimates and an increase in its inventory levels.
As expected, the stock is down 3.4% since the results and currently trades at $8.35.
Read our full analysis of Himax’s results here.
Universal Display (NASDAQ: OLED)
Serving major consumer electronics manufacturers, Universal Display (NASDAQ: OLED) is a provider of organic light emitting diode (OLED) technologies used in display and lighting applications.
Universal Display reported revenues of $171.8 million, up 8.4% year on year. This print topped analysts’ expectations by 6.1%. Overall, it was a very strong quarter as it also logged a beat of analysts’ EPS estimates and a solid beat of analysts’ adjusted operating income estimates.
Universal Display pulled off the biggest analyst estimates beat among its peers. The stock is flat since reporting and currently trades at $145.65.
Read our full, actionable report on Universal Display here, it’s free.
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 $1.08 billion, down 13.4% year on year. This number beat analysts’ expectations by 1.7%. It was a very strong quarter as it also put up a significant improvement in its inventory levels and a beat of analysts’ EPS estimates.
The stock is flat since reporting and currently trades at $65.88.
Read our full, actionable report on Microchip Technology here, it’s free.
Market Update
In response to the Fed’s rate hikes in 2022 and 2023, inflation has been gradually trending down from its post-pandemic peak, trending closer to the Fed’s 2% target. Despite higher borrowing costs, the economy has avoided flashing recessionary signals. This is the much-desired soft landing that many investors hoped for. The recent rate cuts (0.5% in September and 0.25% in November 2024) have bolstered the stock market, making 2024 a strong year for equities. Donald Trump’s presidential win in November sparked additional market gains, sending indices to record highs in the days following his victory. However, debates continue over possible tariffs and corporate tax adjustments, raising questions about economic stability in 2025.
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