Quarterly earnings results are a good time to check in on a company’s progress, especially compared to its peers in the same sector. Today we are looking at onsemi (NASDAQ:ON) and the best and worst performers in the analog semiconductors industry.
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.
While some analog semiconductors stocks have fared somewhat better than others, they have collectively declined. On average, share prices are down 3.6% since the latest earnings results.
onsemi (NASDAQ:ON)
Spun out of Motorola 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 print fell short of analysts’ expectations by 1.8%. Overall, it was a disappointing quarter for the company with a significant miss of analysts’ EPS estimates.
“As we continue to navigate this market downturn, our actions over the last four years have proven we are a structurally different company that is well-equipped to navigate prolonged volatility,” said Hassane El-Khoury, president and CEO, onsemi.
The stock is down 7.1% since reporting and currently trades at $47.61.
Read our full report on onsemi 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 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 7.1% since reporting. It currently trades at $9.77.
Is now the time to buy Himax? Access our full analysis of the earnings results here, it’s free.
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 1% since the results and currently trades at $16.78.
Read our full analysis of Vishay Intertechnology’s results here.
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 $4.01 billion, down 1.7% year on year. This print beat analysts’ expectations by 3.3%. It was a very strong quarter as it also produced a solid beat of analysts’ EPS estimates and an impressive beat of analysts’ adjusted operating income estimates.
The stock is down 4.9% since reporting and currently trades at $190.82.
Read our full, actionable report on Texas Instruments here, it’s free.
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 result met analysts’ expectations. Overall, it was a very strong quarter as it also put up a significant improvement in its inventory levels and revenue guidance for next quarter exceeding analysts’ expectations.
The stock is down 26.3% since reporting and currently trades at $64.25.
Read our full, actionable report on Skyworks Solutions here, it’s free.
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