Q2 Rundown: Microchip Technology (NASDAQ:MCHP) Vs Other Analog Semiconductors Stocks
As the craze of earnings season draws to a close, here’s a look back at some of the most exciting (and some less so) results from Q2. Today, we are looking at analog semiconductors stocks, starting with Microchip Technology (NASDAQ:MCHP).
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 Q2. As a group, revenues beat analysts’ consensus estimates by 1% while next quarter’s revenue guidance was 1.2% below.
Valuation multiples for many growth stocks have not yet reverted to their early 2021 highs, but the market was optimistic at the end of 2023 due to cooling inflation. This year has been a different story as mixed inflation signals have led to market volatility. However, analog semiconductors stocks have held steady amidst all this with average share prices relatively unchanged since the latest earnings results.
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 $1.24 billion, down 45.8% year on year. This print was in line with analysts’ expectations, but overall, it was a weak quarter for the company with underwhelming revenue guidance for the next quarter.
"We delivered June 2024 quarterly results in line with our guidance as we continued to navigate a challenging macro environment in combination with our customers focusing on reducing their inventory positions based on short lead times for our products," said Ganesh Moorthy, President and Chief Executive Officer.
Microchip Technology delivered the slowest revenue growth of the whole group. Unsurprisingly, the stock is down 3.2% since reporting and currently trades at $81.79.
Read our full report on Microchip Technology here, it’s free.
Best 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 $239.6 million, up 2% year on year, outperforming analysts’ expectations by 2.9%. It was an exceptional quarter for the company with a significant improvement in its gross margin and a significant improvement in its operating margin.
The market seems content with the results as the stock is up 4.1% since reporting. It currently trades at $6.10.
Is now the time to buy Himax? Access our full analysis of the earnings results here, it’s free.
Weakest Q2: 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 $158.5 million, up 8.1% year on year, in line with analysts’ expectations. It was a weak quarter for the company with a miss of analysts’ EPS estimates and full-year revenue guidance missing analysts’ expectations.
As expected, the stock is down 9.2% since the results and currently trades at $193.
Read our full analysis of Universal Display’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 $106.2 million, down 13.8% year on year, surpassing analysts’ expectations by 1.1%. More broadly, it was a mixed quarter for the company with a significant improvement in its inventory levels but underwhelming revenue guidance for the next quarter.
The stock is up 5.8% since reporting and currently trades at $67.90.
Read our full, actionable report on Power Integrations here, it’s free.
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 $3.82 billion, down 15.6% year on year, in line with analysts’ expectations. Zooming out, it was a weak quarter for the company with a decline in its gross margin.
The stock is up 6.2% since reporting and currently trades at $210.49.
Read our full, actionable report on Texas Instruments here, it’s free.
Join Paid Stock Investor Research
Help us make StockStory more helpful to investors like yourself. Join our paid user research session and receive a $50 Amazon gift card for your opinions. Sign up here.
