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Q1 Earnings Highs And Lows: Magnachip (NYSE:MX) Vs The Rest Of The Analog Semiconductors Stocks


Jabin Bastian /
2024/07/02 3:51 am EDT

Looking back on analog semiconductors stocks' Q1 earnings, we examine this quarter's best and worst performers, including Magnachip (NYSE:MX) 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 growth stocks where cash flows further in the future are more important to the story, had a good end of 2023. But the beginning of 2024 has seen more volatile stock performance due to mixed inflation data, but analog semiconductors stocks have performed well, with the share prices up 11.3% on average since the previous earnings results.

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 $49.07 million, down 13.9% 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 a decline in its gross margin.

YJ Kim, Magnachip’s Chief Executive Officer, commented, “In Q1 we started the initial revenue ramp for OLED DDICs for the after-service market, and we were awarded two new designs targeted for a leading China smartphone OEM and also for a leading European EV maker. Our Power Analog Solutions (PAS) business revenue grew 12% sequentially driven by smartphones, e-motors, consumer appliances and server power applications, and we now are launching a slate of next-gen power products to help sustain our momentum. We also are encouraged that the power channel inventory showed signs of improvement in the first quarter.”

Magnachip Total Revenue

The stock is down 3.2% since the results and currently trades at $4.77.

Read our full report on Magnachip 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 29.2% since the results and currently trades at $156.

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.

Microchip Technology had the weakest performance against analyst estimates and slowest revenue growth in the group. The stock is down 2.4% since the results and currently trades at $91.5.

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

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, surpassing analysts' expectations by 9.9%. 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.

Universal Display pulled off the biggest analyst estimates beat and fastest revenue growth among its peers. The stock is up 33.4% since the results and currently trades at $208.5.

Read our full, actionable report on Universal Display 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 $746.3 million, down 14.3% year on year, surpassing analysts' expectations by 1.4%. It was a weak quarter for the company, with underwhelming revenue guidance for the next quarter.

The stock is down 5.1% since the results and currently trades at $21.79.

Read our full, actionable report on Vishay Intertechnology here, it's free.

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