Looking back on analog semiconductors stocks' Q4 earnings, we examine this quarter's best and worst performers, 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 weaker Q4; on average, revenues beat analyst consensus estimates by 1.69%, while on average next quarter revenue guidance was 2.68% under consensus. Increasing interest rates hurt growth companies as investors search for near-term cash flows, but analog semiconductors stocks held their ground better than others, with share prices down 1.17% since the previous earnings results, on average.
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 $262.3 million, down 42% year on year, inline with analysts' expectations. It was a weaker quarter for the company, with slow revenue growth and a decline in operating margin.
“Our objective first and foremost is to strictly manage our inventory level, and we have been aggressive in doing so by sacrificing short term gross margin to offload excess stock. We also continue to curtail our wafer starts while striving to win more projects from customers specifically for the purpose of digesting our excess inventory. Our inventory position has much improved since its peak during the third quarter last year and we anticipate it will continue to decrease to near our historical average no later than the third quarter of 2023,” said Mr. Jordan Wu, President and Chief Executive Officer of Himax.
The stock is down 4.6% since the results and currently trades at $7.88.
Read our full report on Himax 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 $855.3 million, up 1.45% year on year, missing analyst expectations by 3.1%. 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.
Vishay Intertechnology had the weakest performance against analyst estimates among its peers. The stock is down 11.3% since the results and currently trades at $21.29.
Is now the time to buy Vishay Intertechnology? Access our full analysis of the earnings results here, it's free.
Weakest Q4: 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 $61 million, down 44.7% year on year, beating analyst expectations by 2.22%. It was a weak quarter for the company, with declining revenue and underwhelming guidance for the next quarter.
Magnachip had the slowest revenue growth in the group. The stock is down 9.06% since the results and currently trades at $9.34.
Read our full analysis of Magnachip'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 $460 million, up 36.7% year on year, missing analyst expectations by 0.13%. It was a mixed quarter for the company, with an increase in inventory levels and a miss of the top line analyst estimates.
The stock is up 3.17% since the results and currently trades at $478.
Read our full, actionable report on Monolithic Power Systems 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 $4.67 billion, down 3.35% year on year, in line with analyst expectations. It was a weak quarter for the company, with declining revenue and underwhelming guidance for the next quarter.
The stock is down 3.02% since the results and currently trades at $171.75.
Read our full, actionable report on Texas Instruments here, it's free.
The author has no position in any of the stocks mentioned