8642

Q1 Earnings Highlights: ON Semiconductor (NASDAQ:ON) Vs The Rest Of The Analog Semiconductors Stocks


Radek Strnad /
2024/07/10 4:53 am EDT

As the Q1 earnings season wraps, let's dig into this quarter's best and worst performers in the analog semiconductors industry, including ON Semiconductor (NASDAQ:ON) 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. Inflation progressed towards the Fed's 2% goal at the end of 2023, leading to strong stock market performance. The start of 2024 has been a bumpier ride, as the market switches between optimism and pessimism around rate cuts due to mixed inflation data, but analog semiconductors stocks have performed well, with the share prices up 15.5% on average since the previous earnings results.

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. It was a weaker quarter for the company with underwhelming revenue guidance for the next quarter and an increase in its inventory levels.

“The structural changes we have made to the business over the last three years have enabled us to sustain our gross margin despite challenging market conditions,” said Hassane El-Khoury, president and chief executive officer of onsemi.

ON Semiconductor Total Revenue

The stock is up 7.7% since reporting and currently trades at $73.3.

Read our full report on ON Semiconductor 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 market seems happy with the results as the stock is up 35% since reporting. It currently trades at $163.

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. As expected, the stock is down 1.3% since the results and currently trades at $92.51.

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%. 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 8% since reporting and currently trades at $38.57.

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

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 $457.9 million, up 1.5% year on year, surpassing analysts' expectations by 2.9%. Looking more broadly, it was a solid quarter for the company with an impressive beat of analysts' EPS estimates and optimistic revenue guidance for the next quarter.

The stock is up 30.2% since reporting and currently trades at $847.

Read our full, actionable report on Monolithic Power Systems here, it's free.

Join Paid Stock Investor Research

Help us make StockStory more helpful to investors like yourself. Join our paid user research session and receive a $50 Amazon gift card for your opinions. Sign up here.