Analog Semiconductors Q4 Earnings: Himax (NASDAQ:HIMX) Simply the Best

Earnings results often indicate what direction a company will take in the months ahead. With Q4 now behind us, let’s have a look at Himax (NASDAQ:HIMX) 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 weaker Q4; on average, revenues were in line with analyst consensus estimates, while next quarter's revenue guidance was 3.6% below consensus. Stocks--especially those trading at higher multiples--had a strong end of 2023, but 2024 has seen periods of volatility. Mixed signals about inflation have led to uncertainty around rate cuts, and analog semiconductors stocks have had a rough stretch, with share prices down 7% on average since the previous earnings results.

Best Q4: 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 $227.7 million, down 13.2% year on year, in line with analyst expectations. It was a very strong quarter for the company, with a significant improvement in its inventory levels.

“Traditionally, business operations in the first quarter decelerate due to the Lunar New Year holidays. This year, exacerbated conditions due to sluggish demand are causing panel makers to strategically lower factory utilizations, in an attempt to support panel pricing and profitability. In tandem, OEMs and end customers are maintaining their cautious approach with heightened procurement scrutiny, even with inventories now at more manageable levels. To fortify the resilience of our operations, we are actively implementing strategies to optimize costs and diversify suppliers in both foundries and backend sources to enhance supply flexibility and cost-effectiveness,” said Mr. Jordan Wu, President and Chief Executive Officer of Himax.

The stock is down 13.6% since the results and currently trades at $4.88.

Is now the time to buy Himax? Access our full analysis of the earnings results here, it's free.

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 $70.65 million, down 7.8% year on year, outperforming analyst expectations by 1.5%. It was a decent quarter for the company, with a significant improvement in its inventory levels but a decline in its operating margin.

The stock is up 14.6% since the results and currently trades at $122.08.

Is now the time to buy Impinj? Access our full analysis of the earnings results here, it's free.

Weakest Q4: Texas Instruments (NASDAQ:TXN)

Headquartered in Dallas, Texas since the 1950s, Texas Instruments (NASDAQ:TXN) is the world’s largest producer of analog semiconductors.

Texas Instruments reported revenues of $4.08 billion, down 12.7% year on year, falling short of analyst expectations by 1.4%. It was a weak quarter for the company, with underwhelming revenue guidance for the next quarter and a miss of analysts' revenue estimates.

The stock is down 7.5% since the results and currently trades at $161.3.

Read our full analysis of Texas Instruments's results here.

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 $454 million, down 1.3% year on year, in line with analyst expectations. It was a mixed quarter for the company, with a significant improvement in its inventory levels but a decline in its gross margin.

The stock is down 4.2% since the results and currently trades at $618.

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

MACOM (NASDAQ:MTSI)

Founded in the 1950s as Microwave Associates, a communications supplier to the US Army Signal Corp, today MACOM Technology Solutions (NASDAQ: MTSI) is a provider of analog chips used in optical, wireless, and satellite networks.

MACOM reported revenues of $157.1 million, down 12.7% year on year, surpassing analyst expectations by 2.9%. It was a mixed quarter for the company, with revenue outperforming Wall Street's estimates, driven by strong demand from the industrial and defense, telecommunications, and data center markets. On the other hand, its operating margin fell, its gross margin shrunk, and its EPS guidance for next quarter underwhelmed.

MACOM pulled off the biggest analyst estimates beat among its peers. The stock is up 9.2% since the results and currently trades at $94.2.

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

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