Earnings results often indicate what direction a company will take in the months ahead. With Q1 behind us, let’s have a look at Impinj (NASDAQ: PI) 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 0.9% above.
Luckily, analog semiconductors stocks have performed well with share prices up 18.3% on average since the latest earnings results.
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 $74.28 million, down 3.3% year on year. This print exceeded analysts’ expectations by 3.7%. Overall, it was a strong quarter for the company with a solid beat of analysts’ EPS estimates and an impressive beat of analysts’ adjusted operating income estimates.
The stock is up 50.5% since reporting and currently trades at $116.
Is now the time to buy Impinj? 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 a solid 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 19.3% since reporting. It currently trades at $8.90.
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 16.2% since the results and currently trades at $15.60.
Read our full analysis of Vishay Intertechnology’s results here.
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 $970.5 million, down 26.8% year on year. This print beat analysts’ expectations by 1%. Zooming out, it was a mixed quarter as it also recorded an impressive beat of analysts’ EPS estimates but revenue guidance for next quarter slightly missing analysts’ expectations.
Microchip Technology had the slowest revenue growth among its peers. The stock is up 39% since reporting and currently trades at $68.25.
Read our full, actionable report on Microchip Technology here, it’s free.
Monolithic Power Systems (NASDAQ: MPWR)
Founded in 1997 by its longtime CEO Michael Hsing, Monolithic Power Systems (NASDAQ: MPWR) is an analog and mixed signal chipmaker that specializes in power management chips meant to minimize total energy consumption.
Monolithic Power Systems reported revenues of $637.6 million, up 39.2% year on year. This number topped analysts’ expectations by 0.7%. Taking a step back, it was a mixed quarter as it also logged a narrow beat of analysts’ EPS estimates but an increase in its inventory levels.
Monolithic Power Systems delivered the fastest revenue growth among its peers. The stock is up 18.3% since reporting and currently trades at $711.93.
Read our full, actionable report on Monolithic Power Systems here, it’s free.
Market Update
Thanks to the Fed’s rate hikes in 2022 and 2023, inflation has been on a steady path downward, easing back toward that 2% sweet spot. Fortunately (miraculously to some), all this tightening didn’t send the economy tumbling into a recession, so here we are, cautiously celebrating a soft landing. The cherry on top? Recent rate cuts (half a point in September 2024, a quarter in November) have propped up markets, especially after Trump’s November win lit a fire under major indices and sent them to all-time highs. However, there’s still plenty to ponder — tariffs, corporate tax cuts, and what 2025 might hold for the economy.
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