As Q1 earnings season comes to a close, it’s time to take stock of this quarter's best and worst performers amongst the analog semiconductors stocks, including Himax (NASDAQ:HIMX) 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 0.91%, while on average next quarter revenue guidance was 2.07% under consensus. Tech stocks have been under pressure as inflation makes their long-dated profits less valuable , but analog semiconductors stocks held their ground better than others, with the share prices up 9.55% since the previous earnings results, on average.
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 $244.2 million, down 40.8% year on year, beating analyst expectations by 6.7%. It was a mixed quarter for the company, with an impressive beat of analyst estimates but a decline in operating margin.
Himax achieved the strongest analyst estimates beat of the whole group. The stock is up 0.44% since the results and currently trades at $6.9.
Best Q1: 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 $871 million, up 2.02% year on year, beating analyst expectations by 2.98%. It was a very strong quarter for the company, with a beat on the bottom line and very optimistic guidance for the next quarter.
The stock is up 34.6% since the results and currently trades at $28.48.
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Weakest Q1: Magnachip (NYSE:MX)
With its technology found in common consumer electronics such as TVs and smartphones, Magnachip Semiconductor (NYSE:MX) is a provider of analog and mixed-signal semiconductors.
Magnachip reported revenues of $57 million, down 45.2% year on year, missing analyst expectations by 6.55%. It was a weak quarter for the company, with underwhelming revenue guidance for the next quarter and a miss of the top line analyst estimates.
Magnachip had the weakest performance against analyst estimates and slowest revenue growth in the group. The stock is up 29% since the results and currently trades at $11.18.
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 $2.23 billion, up 21.1% year on year, in line with analyst expectations. It was a mixed quarter for the company, with strong sales guidance for the next quarter but an increase in inventory levels.
The stock is up 13.6% since the results and currently trades at $86.33.
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 $3.12 billion, down 0.48% year on year, beating analyst expectations by 3.95%. It was a decent quarter for the company, with very optimistic guidance for the next quarter but an increase in inventory levels.
The stock is up 19% since the results and currently trades at $197.5.
The author has no position in any of the stocks mentioned