The end of the earnings season is always a good time to take a step back and see who shined (and who not so much). Let’s take a look at how analog semiconductors stocks fared in Q2, starting with onsemi (NASDAQ: ON).
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.
onsemi (NASDAQ: ON)
Spun out of Motorola in 1999 and built through a series of acquisitions, onsemi (NASDAQ: ON) is a global provider of analog chips specializing in autos, industrial applications, and power management in cloud data centers.
onsemi reported revenues of $1.47 billion, down 15.4% year on year. This print exceeded analysts’ expectations by 1.2%. Despite the top-line beat, it was still a slower quarter for the company with an increase in its inventory levels and EPS in line with analysts’ estimates.
“Our ongoing transformation is resulting in a more predictable business model, reflecting the strength of our strategy and our commitment to long-term value creation. We are beginning to see signs of stabilization across our end markets, and we remain well-positioned to benefit from a market recovery,” said Hassane El-Khoury, president and CEO, onsemi.
onsemi delivered the slowest revenue growth of the whole group. Unsurprisingly, the stock is down 15.2% since reporting and currently trades at $48.20.
Read our full report on onsemi 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 53.9% since reporting. It currently trades at $188.49.
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.
As expected, the stock is down 2.8% since the results and currently trades at $8.40.
Read our full analysis of Himax’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 $943.4 million, down 8.9% year on year. This print surpassed analysts’ expectations by 1.1%. Overall, it was a strong quarter as it also recorded a significant improvement in its inventory levels and a beat of analysts’ EPS estimates.
The stock is flat since reporting and currently trades at $32.24.
Read our full, actionable report on Sensata Technologies here, it’s free.
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 beat analysts’ expectations by 0.8%. Zooming out, 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 3.9% since reporting and currently trades at $45.62.
Read our full, actionable report on Power Integrations here, it’s free.
Market Update
Thanks to the Fed’s series of rate hikes in 2022 and 2023, inflation has cooled significantly from its post-pandemic highs, drawing closer to the 2% goal. This disinflation has occurred without severely impacting economic growth, suggesting the success of a soft landing. The stock market thrived in 2024, spurred by recent rate cuts (0.5% in September and 0.25% in November), and a notable surge followed Donald Trump’s presidential election win in November, propelling indices to historic highs. Nonetheless, the outlook for 2025 remains clouded by potential trade policy changes and corporate tax discussions, which could impact business confidence and growth. The path forward holds both optimism and caution as new policies take shape.
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