Earnings results often indicate what direction a company will take in the months ahead. With Q2 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 mixed Q2. As a group, revenues beat analysts’ consensus estimates by 1% while next quarter’s revenue guidance was 1.2% below.
Stocks--especially those trading at higher multiples--had a strong end of 2023, but this year has seen periods of volatility. Mixed signals about inflation have led to uncertainty around rate cuts, and while some analog semiconductors stocks have fared somewhat better than others, they have collectively declined. On average, share prices are down 2.6% 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 $102.5 million, up 19.2% year on year. This print exceeded analysts’ expectations by 5.2%. Overall, it was an exceptional quarter for the company with a significant improvement in its inventory levels.
“Our second-quarter results were strong, setting several new records,” said Chris Diorio, Impinj co-founder and CEO.
Impinj achieved the biggest analyst estimates beat of the whole group. Unsurprisingly, the stock is up 22.1% since reporting and currently trades at $185.96.
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Best 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 $239.6 million, up 2% year on year, outperforming analysts’ expectations by 2.9%. The business had an exceptional quarter with a significant improvement in its gross margin.
Although it had a fine quarter compared its peers, the market seems unhappy with the results as the stock is down 5.3% since reporting. It currently trades at $5.55.
Weakest Q2: 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 $158.5 million, up 8.1% year on year, in line with analysts’ expectations. It was a softer quarter as it posted a miss of analysts’ EPS estimates.
As expected, the stock is down 1.7% since the results and currently trades at $209.
Vishay Intertechnology (NYSE: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 $741.2 million, down 16.9% year on year. This result lagged analysts' expectations by 1.7%. Overall, it was a softer quarter as it also logged underwhelming revenue guidance for the next quarter and a decline in its operating margin.
Vishay Intertechnology had the weakest performance against analyst estimates among its peers. The stock is down 14.2% since reporting and currently trades at $18.42.
NXP (NASDAQ:NXPI) 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 $3.13 billion, down 5.2% year on year. This number was in line with analysts’ expectations. Taking a step back, it was a weaker quarter as it recorded underwhelming revenue guidance for the next quarter and an increase in its inventory levels.
The stock is down 19.1% since reporting and currently trades at $229.50.
This content was originally published on Stock Story
