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 NXP (NASDAQ:NXPI) Semiconductors (NASDAQ:NXPI) and the rest of the analog semiconductors stocks fared in Q2.
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 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. However, analog semiconductors stocks have held steady amidst all this with average share prices relatively unchanged since the latest earnings results.
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 $3.13 billion, down 5.2% year on year. This print was in line with analysts’ expectations, but overall, it was a weak quarter for the company with underwhelming revenue guidance for the next quarter.
“NXP delivered quarterly revenue of $3.13 billion, consistent with our guidance, with all our focus end-markets performing in-line with our expectations. With our second quarter results and guidance for the third quarter NXP has successfully navigated the cyclical trough in our businesses and we expect to resume sequential growth. We continue to manage what is in our control enabling NXP to drive resilient profitability and earnings in a challenging demand environment,” said Kurt Sievers, NXP President and Chief Executive Officer.
Unsurprisingly, the stock is down 10.3% since reporting and currently trades at $254.56.
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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%. It was an exceptional quarter for the company with a significant improvement in its gross margin.
The market seems content with the results as the stock is up 4.1% since reporting. It currently trades at $6.10.
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 weak quarter for the company with a miss of analysts’ EPS estimates and full-year revenue guidance missing analysts’ expectations.
As expected, the stock is down 9.2% since the results and currently trades at $193.
MACOM (NASDAQ:MTSI) Founded in the 1950s as Microwave Associates, a communications supplier to the US Army Signal Corp, today MACOM Technology Solutions (NASDAQ: NASDAQ:MTSI) is a provider of analog chips used in optical, wireless, and satellite networks.
MACOM reported revenues of $190.5 million, up 28.3% year on year, in line with analysts’ expectations. More broadly, it was a slower quarter for the company with a decline in its gross margin and an increase in its inventory levels.
MACOM delivered the fastest revenue growth among its peers. The stock is up 5.5% since reporting and currently trades at $106.63.
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, surpassing analysts’ expectations by 5.2%. Revenue aside, it was an exceptional quarter for the company with a significant improvement in its gross margin and inventory levels.
Impinj pulled off the biggest analyst estimates beat among its peers. The stock is up 2.7% since reporting and currently trades at $156.37.
This content was originally published on Stock Story
