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Q1 Earnings Highs And Lows: Universal Display (NASDAQ:OLED) Vs The Rest Of The Analog Semiconductors Stocks


Jabin Bastian /
2024/07/11 7:31 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 Universal Display (NASDAQ:OLED) 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. Valuation multiples for many growth stocks have not yet reverted to their early 2021 highs, but the market was optimistic at the end of 2023 due to cooling inflation. The start of 2024 has been a different story as mixed signals have led to market volatility, but analog semiconductors stocks have performed well, with the share prices up 16.8% on average since the previous earnings results.

Universal Display (NASDAQ:OLED)

Serving major consumer electronics manufacturers, Universal Display (NASDAQ:OLED) is a provider of organic light emitting diode (OLED) technologies used in display and lighting applications.

Universal Display reported revenues of $165.3 million, up 26.7% year on year, exceeding analysts' expectations by 9.9%. Overall, it was a very strong quarter for the company with an impressive beat of analysts' EPS estimates and a significant improvement in its gross margin.

“We began the year on a strong note with solid first quarter results across the board,” said Brian Millard, Vice President and Chief Financial Officer of Universal Display Corporation.

Universal Display Total Revenue

Universal Display scored the biggest analyst estimates beat and fastest revenue growth of the whole group. The stock is up 42% since reporting and currently trades at $222.

Read why we think that Universal Display is one of the best analog semiconductors stocks, our full report is 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 market seems happy with the results as the stock is up 32.5% since reporting. It currently trades at $160.

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 flat since the results and currently trades at $94.

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

ON Semiconductor (NASDAQ:ON)

Spun out of Motorola in 1999 and built through a series of acquisitions, ON Semiconductor (NASDAQ:ON) is a global provider of analog chips specializing in autos, industrial applications, and power management in cloud data centers.

ON Semiconductor reported revenues of $1.86 billion, down 4.9% year on year, in line with analysts' expectations. Looking more broadly, it was a weaker quarter for the company with underwhelming revenue guidance for the next quarter and an increase in its inventory levels.

The stock is up 8.9% since reporting and currently trades at $74.1.

Read our full, actionable report on ON Semiconductor here, it's free.

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%. Looking more broadly, 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 11.1% since reporting and currently trades at $39.68.

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

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