Looking back on analog semiconductors stocks’ Q1 earnings, we examine this quarter’s best and worst performers, including MACOM (NASDAQ: MTSI) and its peers.
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 strong Q1. As a group, revenues beat analysts’ consensus estimates by 2.2% while next quarter’s revenue guidance was 1% above.
Luckily, analog semiconductors stocks have performed well with share prices up 10.2% on average since the latest earnings results.
MACOM (NASDAQ: MTSI)
Founded in the 1950s as Microwave Associates, a communications supplier to the US Army Signal Corp, today MACOM Technology Solutions (NASDAQ: MTSI) is a provider of analog chips used in optical, wireless, and satellite networks.
MACOM reported revenues of $235.9 million, up 30.2% year on year. This print exceeded analysts’ expectations by 2.6%. Overall, it was a satisfactory quarter for the company with a narrow beat of analysts’ EPS estimates but an increase in its inventory levels.
The stock is up 8.9% since reporting and currently trades at $123.50.
Is now the time to buy MACOM? Access our full analysis of the earnings results here, it’s free.
Best Q1: 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 $215.1 million, up 3.7% year on year, outperforming analysts’ expectations by 2.4%. The business had an exceptional quarter with an impressive beat of analysts’ EPS estimates and revenue guidance for next quarter exceeding analysts’ expectations.
The market seems happy with the results as the stock is up 12.6% since reporting. It currently trades at $8.40.
Is now the time to buy Himax? Access our full analysis of the earnings results here, it’s free.
Weakest Q1: 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 $715.2 million, down 4.2% year on year, falling short of analysts’ expectations by 0.6%. It was a slower quarter as it posted a significant miss of analysts’ EPS estimates.
Vishay Intertechnology delivered the weakest performance against analyst estimates in the group. Interestingly, the stock is up 6.4% since the results and currently trades at $14.29.
Read our full analysis of Vishay Intertechnology’s results here.
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 $953.2 million, down 8.9% year on year. This number met analysts’ expectations. Taking a step back, it was a satisfactory quarter as it also produced a solid beat of analysts’ adjusted operating income estimates but an increase in its inventory levels.
The stock is up 3.1% since reporting and currently trades at $69.
Read our full, actionable report on Skyworks Solutions here, it’s free.
onsemi (NASDAQ: ON)
Spun out of Motorola in 1999 and built through a series of acquisitions, onsemi (NASDAQ: ON) is a global provider of analog chips specializing in autos, industrial applications, and power management in cloud data centers.
onsemi reported revenues of $1.45 billion, down 22.4% year on year. This result beat analysts’ expectations by 3.1%. It was an exceptional quarter as it also logged a significant improvement in its inventory levels and a solid beat of analysts’ EPS estimates.
The stock is up 1.6% since reporting and currently trades at $42.61.
Read our full, actionable report on onsemi here, it’s free.
Market Update
The Fed’s interest rate hikes throughout 2022 and 2023 have successfully cooled post-pandemic inflation, bringing it closer to the 2% target. Inflationary pressures have eased without tipping the economy into a recession, suggesting a soft landing. This stability, paired with recent rate cuts (0.5% in September 2024 and 0.25% in November 2024), fueled a strong year for the stock market in 2024. The markets surged further after Donald Trump’s presidential victory in November, with major indices reaching record highs in the days following the election. Still, questions remain about the direction of economic policy, as potential tariffs and corporate tax changes add uncertainty for 2025.
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