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Analog Semiconductors Stocks Q3 Recap: Benchmarking ON Semiconductor (NASDAQ:ON)

By: StockStory

December 25, 2024 at 04:03 AM EST

ON Cover Image

Looking back on analog semiconductors stocks’ Q3 earnings, we examine this quarter’s best and worst performers, including ON Semiconductor (NASDAQ: ON) 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 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 7.7% since the latest earnings results.

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 exceeded analysts’ expectations by 0.5%. Despite the top-line beat, it was still a mixed quarter for the company with a decent beat of analysts’ adjusted operating income estimates but revenue guidance for next quarter slightly missing analysts’ expectations.

“With third-quarter results above expectations, we remain focused on delivering consistent results in the current environment through execution and prudent financial management,” said Hassane El-Khoury, president and CEO, onsemi.

Unsurprisingly, the stock is down 4.8% since reporting and currently trades at $67.80.

Read our full report on ON Semiconductor 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 delivered the fastest revenue growth among its peers. Although it had a fine quarter compared its peers, the market seems unhappy with the results as the stock is down 34.3% since reporting. It currently trades at $145.31.

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 2.9% since the results and currently trades at $17.54.

Read our full analysis of Vishay Intertechnology’s results here.

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 $222.4 million, down 6.8% year on year. This number surpassed analysts’ expectations by 1.1%. Overall, it was a very strong quarter as it also produced an impressive beat of analysts’ EPS estimates and an improvement in its inventory levels.

The stock is up 35.9% since reporting and currently trades at $8.09.

Read our full, actionable report on Himax here, it’s free.

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 met analysts’ expectations. More broadly, it was a mixed quarter as it also logged a significant improvement in its inventory levels but revenue guidance for next quarter missing analysts’ expectations.

The stock is up 4.1% since reporting and currently trades at $90.69.

Read our full, actionable report on Skyworks Solutions 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% each in November and December), 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 the pace and magnitude of future rate cuts as well as potential changes in trade policy and corporate taxes once the Trump administration takes over. The path forward is marked by uncertainty.

Want to invest in winners with rock-solid fundamentals? Check out our Hidden Gem Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.

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