Reflecting On Analog Semiconductors Stocks’ Q4 Earnings: ON Semiconductor (NASDAQ:ON)
As Q4 earnings season comes to a close, it’s time to take stock of this quarter's best and worst performers amongst the analog semiconductors stocks, including ON Semiconductor (NASDAQ:ON) 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. Inflation (despite slowing) has investors prioritizing near-term cash flows, but analog semiconductors stocks held their ground better than others, with share prices down 0.6% on average since the previous earnings results.
ON Semiconductor (NASDAQ:ON)
Spun out of Motorola in 1999 and built through a series of acquisitions, ON Semiconductor (NASDAQ:ON) is a global provider of analog chips specializing in autos, industrial applications, and power management in cloud data centers.
ON Semiconductor reported revenues of $2.02 billion, down 4.1% year on year, in line with analyst expectations. It was a weaker quarter for the company, with underwhelming revenue guidance for the next quarter and an increase in its inventory levels.
“Our momentum continued this past year as we achieved record automotive revenue and 4x year-over-year growth in silicon carbide revenue. We continue to transform the business by building resilience into our model, enabling us to navigate uncertain market conditions and deliver more predictable and sustainable results,” said Hassane El-Khoury, president and chief executive officer of onsemi.
The stock is down 1.4% since the results and currently trades at $69.67.
Read our full report on ON Semiconductor here, it's free.
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.
The stock is down 4% since the results and currently trades at $5.42.
Is now the time to buy Himax? 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 3.1% since the results and currently trades at $169.01.
Read our full analysis of Texas Instruments's results here.
Magnachip (NYSE:MX)
With its technology found in common consumer electronics such as TVs and smartphones, Magnachip Semiconductor (NYSE:MX) is a provider of analog and mixed-signal semiconductors.
Magnachip reported revenues of $50.82 million, down 16.7% year on year, falling short of analyst expectations by 3.1%. It was a weak quarter for the company, with EPS exceeding analysts' expectations. On the other hand, its revenue and gross margin missed, and its full-year 2024 revenue and operating profit guidance fell short of Wall Street's estimates.
Magnachip had the weakest performance against analyst estimates among its peers. The stock is down 14.7% since the results and currently trades at $5.7.
Read our full, actionable report on Magnachip 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 $158.3 million, down 6.3% year on year, falling short of analyst expectations by 1.7%. It was a weaker quarter for the company, with full-year revenue guidance missing analysts' expectations and a miss of analysts' revenue estimates.
The stock is down 12.6% since the results and currently trades at $163.55.
Read our full, actionable report on Universal Display here, it's free.
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