Looking back on analog semiconductors stocks' Q1 earnings, we examine this quarter's best and worst performers, including Power Integrations (NASDAQ:POWI) 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 slower Q1; on average, revenues beat analyst consensus estimates by 1.9%. while next quarter's revenue guidance was in line with consensus. Stocks, especially growth stocks where cash flows further in the future are more important to the story, had a good end of 2023. But the beginning of 2024 has seen more volatile stock performance due to mixed inflation data, but analog semiconductors stocks have performed well, with the share prices up 14.3% on average since the previous earnings results.
Power Integrations (NASDAQ:POWI) A leading supplier of parts for electronics such as home appliances, Power Integrations (NASDAQ:POWI) is a semiconductor designer and developer specializing in products used for high-voltage power conversion.
Power Integrations reported revenues of $91.69 million, down 13.7% year on year, topping analysts' expectations by 1.9%. It was a decent quarter for the company, with an impressive beat of analysts' EPS estimates but a decline in its operating margin.
The stock is up 0.6% since the results and currently trades at $70.68.
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Best Q1: 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 $76.83 million, down 10.6% year on year, outperforming analysts' expectations by 4.4%. It was a very strong quarter for the company, with a significant improvement in its inventory levels and an impressive beat of analysts' EPS estimates.
The stock is up 31.7% since the results and currently trades at $159.02.
Weakest Q1: 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 $1.33 billion, down 40.6% year on year, falling short of analysts' expectations by 1.2%. It was a weak quarter for the company, with underwhelming revenue guidance for the next quarter and a decline in its operating margin.
Microchip Technology had the weakest performance against analyst estimates and slowest revenue growth in the group. The stock is up 1.1% since the results and currently trades at $94.83.
Analog Devices (NASDAQ:ADI) Founded by two MIT graduates, Ray Stata and Matthew Lorber in 1965, Analog Devices (NASDAQ:ADI) is one of the largest providers of high performance analog integrated circuits used mainly in industrial end markets, along with communications, autos, and consumer devices.
Analog Devices reported revenues of $2.16 billion, down 33.8% year on year, surpassing analysts' expectations by 2.5%. It was an ok quarter for the company, with an impressive beat of analysts' EPS estimates but a decline in its operating margin.
The stock is up 6.6% since the results and currently trades at $230.89.
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 $1.05 billion, down 9.3% year on year, inline with analysts' expectations. It was a weak quarter for the company, with underwhelming revenue guidance for the next quarter and a decline in its operating margin.
The stock is down 2.2% since the results and currently trades at $104.23.
This content was originally published on Stock Story
