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Q3 Analog Semiconductors Earnings: Impinj (NASDAQ:PI) Earns Top Marks

By: StockStory

December 31, 2024 at 04:06 AM EST

PI Cover Image

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 Impinj (NASDAQ: PI) 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 10.1% since the latest earnings results.

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. This print exceeded analysts’ expectations by 2.5%. Overall, it was a very strong quarter for the company with a solid beat of analysts’ EPS estimates and an impressive beat of analysts’ adjusted operating income estimates.

“Our third-quarter results were strong, with revenue and profitability well above our guidance,” said Chris Diorio, Impinj co-founder and CEO.

Impinj achieved the fastest revenue growth of the whole group. Investor expectations, however, were likely higher than Wall Street’s published projections, leaving some wishing for even better results (analysts’ consensus estimates are those published by big banks and advisory firms, not the investors who make buy and sell decisions). The stock is down 34% since reporting and currently trades at $145.99.

We think Impinj is a good business, but is it a buy today? Read our full report here, it’s free.

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, outperforming analysts’ expectations by 1.1%. The business had a very strong quarter with a solid beat of analysts’ EPS estimates and an improvement in its inventory levels.

The market seems happy with the results as the stock is up 33.3% since reporting. It currently trades at $7.94.

Is now the time to buy Himax? Access our full analysis of the earnings results here, it’s free.

Slowest Q3: 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. As expected, the stock is down 1.5% since the results and currently trades at $16.80.

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

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 result topped analysts’ expectations by 0.8%. It was a strong quarter as it also logged a solid beat of analysts’ adjusted operating income estimates and an impressive beat of analysts’ EPS estimates.

The stock is down 3.1% since reporting and currently trades at $187.85.

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

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 $3.25 billion, down 5.4% year on year. This number was in line with analysts’ expectations. Taking a step back, it was a slower quarter as it recorded revenue guidance for next quarter missing analysts’ expectations significantly.

The stock is down 11.9% since reporting and currently trades at $208.70.

Read our full, actionable report on NXP Semiconductors 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.

Want to invest in winners with rock-solid fundamentals? Check out our Top 6 Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.

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