As the Q4 earnings season wraps, let’s dig into this quarter’s best and worst performers in the analog semiconductors industry, including Vishay Intertechnology (NYSE: VSH) 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 Q4. As a group, revenues beat analysts’ consensus estimates by 1.7% while next quarter’s revenue guidance was 7,107% above.
Amidst this news, share prices of the companies have had a rough stretch. On average, they are down 23.2% since the latest earnings results.
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. This print fell short of analysts’ expectations by 1.1%. Overall, it was a disappointing quarter for the company with a significant miss of analysts’ adjusted operating income and EPS estimates.
“Our fourth quarter results came in as expected, slightly below the third quarter. Nevertheless, we saw many promising indicators including a positive book-to-bill for the first time in nine quarters, strong order intake for smart grid infrastructure projects, and initial shipments for A.I. servers,” said Joel Smejkal, President and CEO.
The stock is down 24.7% since reporting and currently trades at $12.51.
Read our full report on Vishay Intertechnology here, it’s free.
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 a stunning quarter with a significant improvement in its inventory levels and an impressive beat of analysts’ EPS estimates.
The stock is down 31.4% since reporting. It currently trades at $6.26.
Is now the time to buy Himax? Access our full analysis of the earnings results here, it’s free.
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 $1.03 billion, down 41.9% year on year, falling short of analysts’ expectations by 1.8%. It was a disappointing quarter as it posted a significant miss of analysts’ adjusted operating income and EPS estimates.
Microchip Technology delivered the weakest performance against analyst estimates and slowest revenue growth in the group. As expected, the stock is down 18.8% since the results and currently trades at $43.13.
Read our full analysis of Microchip Technology’s results here.
Monolithic Power Systems (NASDAQ: MPWR)
Founded in 1997 by its longtime CEO Michael Hsing, Monolithic Power Systems (NASDAQ: MPWR) is an analog and mixed signal chipmaker that specializes in power management chips meant to minimize total energy consumption.
Monolithic Power Systems reported revenues of $621.7 million, up 36.9% year on year. This print beat analysts’ expectations by 2.3%. Zooming out, it was a mixed quarter as it also logged a decent beat of analysts’ EPS estimates but revenue guidance for next quarter missing analysts’ expectations.
The stock is down 18.9% since reporting and currently trades at $537.37.
Read our full, actionable report on Monolithic Power Systems here, it’s free.
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 $3.11 billion, down 9.1% year on year. This result met analysts’ expectations. Taking a step back, it was a mixed quarter as it also recorded a narrow beat of analysts’ EPS estimates but an increase in its inventory levels.
The stock is down 12% since reporting and currently trades at $180.01.
Read our full, actionable report on NXP Semiconductors here, it’s free.
Market Update
As a result of the Fed’s rate hikes in 2022 and 2023, inflation has come down from frothy levels post-pandemic. The general rise in the price of goods and services is trending towards the Fed’s 2% goal as of late, which is good news. The higher rates that fought inflation also didn't slow economic activity enough to catalyze a recession. So far, soft landing. This, combined with recent rate cuts (half a percent in September 2024 and a quarter percent in November 2024) have led to strong stock market performance in 2024. The icing on the cake for 2024 returns was Donald Trump’s victory in the U.S. Presidential Election in early November, sending major indices to all-time highs in the week following the election. Still, debates around the health of the economy and the impact of potential tariffs and corporate tax cuts remain, leaving much uncertainty around 2025.
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