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Winners And Losers Of Q1: Analog Devices (NASDAQ:ADI) Vs The Rest Of The Analog Semiconductors Stocks


Jabin Bastian /
2024/06/13 2:53 am EDT

As the Q1 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 Analog Devices (NASDAQ:ADI) 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 slower Q1; on average, revenues beat analyst consensus estimates by 1.9%. while next quarter's revenue guidance was in line with consensus. Stocks--especially those trading at higher multiples--had a strong end of 2023, but 2024 has seen periods of volatility. Mixed signals about inflation have led to uncertainty around rate cuts, but analog semiconductors stocks have exhibited impressive performance, with the share prices up 12.7% on average since the previous earnings results.

Analog Devices (NASDAQ:ADI)

Founded by two MIT graduates, Ray Stata and Matthew Lorber in 1965, Analog Devices (NASDAQ:ADI) is one of the largest providers of high performance analog integrated circuits used mainly in industrial end markets, along with communications, autos, and consumer devices.

Analog Devices reported revenues of $2.16 billion, down 33.8% year on year, topping analysts' expectations by 2.5%. It was an ok quarter for the company, with an impressive beat of analysts' EPS estimates but a decline in its operating margin.

"ADI delivered second quarter revenue above the midpoint of our outlook, despite continued macro and inventory headwinds. Further, the strength and resiliency of our business model, coupled with disciplined cost control, enabled us to achieve profitability and earnings per share above the high-end of our outlook," said Vincent Roche, CEO and Chair.

Analog Devices Total Revenue

The stock is up 9.9% since the results and currently trades at $238.1.

Is now the time to buy Analog Devices? Access our full analysis of the earnings results here, it's free.

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, outperforming analysts' expectations by 4.4%. 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.

Impinj Total Revenue

The stock is up 27.1% since the results and currently trades at $153.5.

Is now the time to buy Impinj? Access our full analysis of the earnings results here, it's free.

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 had the weakest performance against analyst estimates and slowest revenue growth in the group. The stock is up 0.1% since the results and currently trades at $93.9.

Read our full analysis of Microchip Technology's results here.

Sensata Technologies (NYSE:ST)

Originally a temperature sensor control maker and a subsidiary of Texas Instruments for 60 years, Sensata Technology Holdings (NYSE: ST) is a leading supplier of analog sensors used in industrial and transportation applications, best known for its dominant position in the tire pressure monitoring systems in cars.

Sensata Technologies reported revenues of $1.01 billion, flat year on year, surpassing analysts' expectations by 2.1%. It was a decent quarter for the company, with a solid beat of analysts' EPS estimates but a decline in its gross margin.

The stock is up 11% since the results and currently trades at $39.64.

Read our full, actionable report on Sensata Technologies here, it's free.

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%. It was a slower quarter for the company, with a decline in its operating margin.

The stock is up 20.2% since the results and currently trades at $198.69.

Read our full, actionable report on Texas Instruments here, it's free.

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