As the second quarter earnings season comes to a close, it’s time to examine the top and bottom performers in the analog semiconductor industry. This sector is closely tied to the overall state of the economy, as analog chips are essential components in most electronic devices and equipment. Unlike digital chip designers, analog chip manufacturers typically produce their own chips, which don’t require cutting-edge technology. As a result, analog product cycles are longer, often lasting 5-7 years.
The 15 analog semiconductor stocks we track reported mixed results for Q2. As a group, revenues exceeded analysts’ consensus estimates by 1%, while next quarter’s revenue guidance fell 1.2% short. The Federal Reserve’s recent 50bps rate cut, the first in four years, has sparked debate about whether the timing is right to support the economy or if it’s too little, too late.
Taiwan-based Himax Technologies, a leading manufacturer of display driver chips and timing controllers, reported revenues of $239.6 million, a 2% year-over-year increase that beat analysts’ expectations by 2.9%. The company’s gross margin saw significant improvement, making it an exceptional quarter. Despite this, the stock has fallen 4.3% since reporting and currently trades at $5.61.
Impinj, a maker of radio-frequency identification (RFID) hardware and software, reported revenues of $102.5 million, a 19.2% year-over-year increase that outperformed analysts’ expectations by 5.2%. The company’s inventory levels saw significant improvement, and its stock has surged 39.8% since reporting, currently trading at $213.
Universal Display, a provider of organic light emitting diode (OLED) technologies, reported revenues of $158.5 million, an 8.1% year-over-year increase that met analysts’ expectations. However, the company missed EPS estimates and full-year revenue guidance, causing its stock to fall 2.3% since reporting, currently trading at $207.60.
Analog Devices, a leading provider of high-performance analog integrated circuits, reported revenues of $2.31 billion, a 24.9% year-over-year decrease that beat analysts’ expectations by 1.6%. While the company recorded a solid beat of EPS estimates, its gross margin declined. The stock has risen 1.3% since reporting, currently trading at $226.30.
Skyworks Solutions, a designer and manufacturer of chips used in smartphones, autos, and industrial applications, reported revenues of $905.5 million, a 15.5% year-over-year decrease that met analysts’ expectations. The company’s operating margin declined, and inventory levels increased, causing its stock to fall 17.9% since reporting, currently trading at $96.72.
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