Quarterly earnings results are a good time to check in on a company’s progress, especially compared to its peers in the same sector. Today we are looking at Skyworks Solutions (NASDAQ: SWKS) and the best and worst performers in the analog semiconductors industry.
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 satisfactory Q2. As a group, revenues beat analysts’ consensus estimates by 2% while next quarter’s revenue guidance was in line.
In light of this news, share prices of the companies have held steady. On average, they are relatively unchanged since the latest earnings results.
Skyworks Solutions (NASDAQ: SWKS)
Result of a merger of Alpha Industries and the wireless communications division of Conexant, Skyworks Solutions (NASDAQ: SWKS) is a designer and manufacturer of chips used in smartphones, autos, and industrial applications to amplify, filter, and process wireless signals.
Skyworks Solutions reported revenues of $965 million, up 6.6% year on year. This print exceeded analysts’ expectations by 2.6%. Overall, it was a very strong quarter for the company with a beat of analysts’ EPS and adjusted operating income estimates.
Interestingly, the stock is up 11.9% since reporting and currently trades at $75.76.
Is now the time to buy Skyworks Solutions? Access our full analysis of the earnings results here, it’s free.
Best Q2: 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 $97.89 million, down 4.5% year on year, outperforming analysts’ expectations by 4.3%. The business had an exceptional quarter with a significant improvement in its inventory levels and a beat of analysts’ EPS estimates.
The market seems happy with the results as the stock is up 50.5% since reporting. It currently trades at $184.36.
Is now the time to buy Impinj? Access our full analysis of the earnings results here, it’s free.
Weakest Q2: 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 $214.8 million, down 10.4% year on year, exceeding analysts’ expectations by 1.3%. Still, it was a softer quarter as it posted EPS in line with analysts’ estimates and an increase in its inventory levels.
Interestingly, the stock is up 2.1% since the results and currently trades at $8.82.
Read our full analysis of Himax’s results here.
Power Integrations (NASDAQ: POWI)
A leading supplier of parts for electronics such as home appliances, Power Integrations (NASDAQ: POWI) is a semiconductor designer and developer specializing in products used for high-voltage power conversion.
Power Integrations reported revenues of $115.9 million, up 9.1% year on year. This result topped analysts’ expectations by 0.8%. More broadly, it was a satisfactory quarter as it also produced a significant improvement in its inventory levels but revenue guidance for next quarter meeting analysts’ expectations.
The stock is down 14.5% since reporting and currently trades at $40.60.
Read our full, actionable report on Power Integrations here, it’s free.
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 $171.8 million, up 8.4% year on year. This print surpassed analysts’ expectations by 6.1%. It was a very strong quarter as it also put up a beat of analysts’ EPS estimates and a solid beat of analysts’ adjusted operating income estimates.
Universal Display pulled off the biggest analyst estimates beat among its peers. The stock is down 1.2% since reporting and currently trades at $143.
Read our full, actionable report on Universal Display here, it’s free.
Market Update
The Fed’s interest rate hikes throughout 2022 and 2023 have successfully cooled post-pandemic inflation, bringing it closer to the 2% target. Inflationary pressures have eased without tipping the economy into a recession, suggesting a soft landing. This stability, paired with recent rate cuts (0.5% in September 2024 and 0.25% in November 2024), fueled a strong year for the stock market in 2024. The markets surged further after Donald Trump’s presidential victory in November, with major indices reaching record highs in the days following the election. Still, questions remain about the direction of economic policy, as potential tariffs and corporate tax changes add uncertainty for 2025.
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