As the Q4 earnings season comes to a close, it’s time to take stock of this quarter’s best and worst performers in the analog semiconductors industry, including Skyworks Solutions (NASDAQ:SWKS) 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 14 analog semiconductors stocks we track reported a mixed Q4. As a group, revenues beat analysts’ consensus estimates by 1.7% while next quarter’s revenue guidance was above.
In light of this news, share prices of the companies have held steady as they are up 1.3% on average since the latest earnings results.
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 $1.07 billion, down 11.1% year on year. This print was in line with analysts’ expectations, and overall, it was a very strong quarter for the company with a significant improvement in its inventory levels and revenue guidance for next quarter exceeding analysts’ expectations.
“Skyworks started the new fiscal year with solid results, growing revenue 4% sequentially and surpassing the midpoint of our guidance,” said Liam K. Griffin, chief executive officer and president of Skyworks.
The stock is down 23.7% since reporting and currently trades at $66.52.
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Best Q4: 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 $237.2 million, up 4.2% year on year, outperforming analysts’ expectations by 7.3%. The business had an incredible quarter with a significant improvement in its inventory levels and an impressive beat of analysts’ EPS estimates.
The market seems happy with the results as the stock is up 11.8% since reporting. It currently trades at $10.20.
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 $714.7 million, down 9% year on year, falling short of analysts’ expectations by 1.1%. It was a disappointing quarter as it posted a significant miss of analysts’ adjusted operating income and EPS estimates.
Interestingly, the stock is up 8.2% since the results and currently trades at $17.97.
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 $105.3 million, up 17.6% year on year. This result met analysts’ expectations. Taking a step back, it was a slower quarter as it produced revenue guidance for next quarter missing analysts’ expectations significantly and an increase in its inventory levels.
The stock is up 8.2% since reporting and currently trades at $65.75.
onsemi (NASDAQ:ON)
Spun out of Motorola (NYSE:MSI) in 1999 and built through a series of acquisitions, onsemi (NASDAQ:ON) is a global provider of analog chips specializing in autos, industrial applications, and power management in cloud data centers.onsemi reported revenues of $1.72 billion, down 14.6% year on year. This number missed analysts’ expectations by 1.8%. Overall, it was a disappointing quarter as it also produced a significant miss of analysts’ EPS estimates.
The stock is down 2.4% since reporting and currently trades at $50.
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