Power management chips maker Monolithic Power Systems (NASDAQ:MPWR) will be announcing earnings results tomorrow after market hours. Here’s what investors should know.
Monolithic Power Systems beat analysts’ revenue expectations by 3.2% last quarter, reporting revenues of $620.1 million, up 30.6% year on year. It was a strong quarter for the company, with a significant improvement in its inventory levels and a decent beat of analysts’ adjusted operating income estimates.
Is Monolithic Power Systems a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Monolithic Power Systems’s revenue to grow 33.9% year on year to $608 million, a reversal from the 1.3% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $3.98 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Monolithic Power Systems has missed Wall Street’s revenue estimates twice over the last two years.
Looking at Monolithic Power Systems’s peers in the analog semiconductors segment, some have already reported their Q4 results, giving us a hint as to what we can expect. Texas Instruments’s revenues decreased 1.7% year on year, beating analysts’ expectations by 3.3%, and NXP Semiconductors reported a revenue decline of 9.1%, in line with consensus estimates. Texas Instruments traded down 7.5% following the results while NXP Semiconductors was also down 1.1%.
Read our full analysis of Texas Instruments’s results here and NXP Semiconductors’s results here.
Stocks generally had a good 2024. The Fed fought high inflation and won without sending the economy into a recession, otherwise lovingly known as a soft landing. The US Central Band is now cutting rates. That, plus the election of Donald Trump in November 2024, sent markets even higher, and while some of the analog semiconductors stocks have shown solid performance, the group has generally underpeformed, with share prices down 3% on average over the last month. Monolithic Power Systems is up 4.7% during the same time and is heading into earnings with an average analyst price target of $784.37 (compared to the current share price of $654.11).
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