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Analog Semiconductors Stocks Q4 Highlights: Analog Devices (NASDAQ:ADI)

StockStory - Wed Apr 3, 4:47AM CDT

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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 Analog Devices (NASDAQ:ADI) 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. Investors abandoned cash-burning companies to buy stocks with higher margins of safety, but analog semiconductors stocks held their ground better than others, with share prices down 0% on average since the previous earnings results.

Analog Devices (NASDAQ:ADI)

Founded by two MIT graduates, Ray Stata and Matthew Lorber in 1965, Analog Devices (NASDAQ:ADI) is one of the largest providers of high performance analog integrated circuits used mainly in industrial end markets, along with communications, autos, and consumer devices.

Analog Devices reported revenues of $2.51 billion, down 22.7% year on year, in line with analyst expectations. It was a weak quarter for the company, with underwhelming revenue guidance for the next quarter and a decline in its gross margin.

“ADI delivered first quarter revenue and profitability above the midpoint of our outlook, despite the continued difficult macroeconomic environment,” said Vincent Roche, CEO and Chair.

Analog Devices Total Revenue

The stock is up 2.9% since the results and currently trades at $194.88.

Read our full report on Analog Devices 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.

Himax Total Revenue

The stock is down 3.3% since the results and currently trades at $5.46.

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 0.7% since the results and currently trades at $173.17.

Read our full analysis of Texas Instruments'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 $992.5 million, down 2.2% year on year, surpassing analyst expectations by 1.4%. It was a weak quarter for the company, with a miss of analysts' EPS estimates and a decline in its gross margin.

The stock is up 0.9% since the results and currently trades at $36.46.

Read our full, actionable report on Sensata Technologies 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, surpassing 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 20.7% since the results and currently trades at $128.56.

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

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