The end of an earnings season can be a great time to discover new stocks and assess how companies are handling the current business environment. Let’s take a look at how Impinj (NASDAQ:PI) and the rest of the analog semiconductors stocks fared in Q1.
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. Valuation multiples for many growth stocks have not yet reverted to their early 2021 highs, but the market was optimistic at the end of 2023 due to cooling inflation. The start of 2024 has been a different story as mixed signals have led to market volatility, but analog semiconductors stocks have performed well, with the share prices up 19.8% on average since the previous earnings results.
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, exceeding analysts' expectations by 4.4%. Overall, 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.
“2024 started strong, with revenue and profitability exceeding both our fourth-quarter results and first-quarter guidance,” said Chris Diorio, Impinj co-founder and CEO.
The stock is up 47.4% since reporting and currently trades at $178.
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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 $165.3 million, up 26.7% year on year, outperforming analysts' expectations by 9.9%. It was a very strong quarter for the company with an impressive beat of analysts' EPS estimates and a significant improvement in its gross margin.
Universal Display achieved the biggest analyst estimates beat and fastest revenue growth among its peers. The market seems happy with the results as the stock is up 47.3% since reporting. It currently trades at $230.22.
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 posted the weakest performance against analyst estimates and slowest revenue growth in the group. As expected, the stock is down 1.2% since the results and currently trades at $92.67.
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 $3.66 billion, down 16.4% year on year, surpassing analysts' expectations by 1.4%. Taking a step back, it was a slower quarter for the company with a decline in its operating margin.
The stock is up 22.2% since reporting and currently trades at $202.05.
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 $207.6 million, down 15% year on year, surpassing analysts' expectations by 2%. Zooming out, it was a slower quarter for the company with a decline in its operating margin.
The stock is up 54.2% since reporting and currently trades at $8.04.
This content was originally published on Stock Story
