Power management chips maker Monolithic Power Systems (NASDAQ:MPWR) will be reporting earnings tomorrow afternoon. Here’s what to expect.
Monolithic Power Systems beat analysts’ revenue expectations by 3.4% last quarter, reporting revenues of $507.4 million, up 15% year on year. It was a strong quarter for the company, with optimistic revenue guidance for the next quarter and a decent beat of analysts’ EPS 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 26.4% year on year to $600.4 million, a reversal from the 4.1% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $3.97 per share.
The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Monolithic Power Systems has only missed Wall Street’s revenue estimates once over the last two years, exceeding top-line expectations by 1% on average.
Looking at Monolithic Power Systems’s peers in the analog semiconductors segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Impinj delivered year-on-year revenue growth of 46.4%, beating analysts’ expectations by 2.5%, and ON Semiconductor reported a revenue decline of 19.2%, in line with consensus estimates. Impinj traded down 13.1% following the results.
Read our full analysis of Impinj’s results here and ON Semiconductor’s results here.
Investors in the analog semiconductors segment have had steady hands going into earnings, with share prices flat over the last month. Monolithic Power Systems is down 3.2% during the same time and is heading into earnings with an average analyst price target of $955.33 (compared to the current share price of $894.99).
Today’s young investors won’t have read the timeless lessons in Gorilla Game: Picking Winners In High Technology because it was written more than 20 years ago when Microsoft and Apple were first establishing their supremacy. But if we apply the same principles, then enterprise software stocks leveraging their own generative AI capabilities may well be the Gorillas of the future. So, in that spirit, we are excited to present our Special Free Report on a profitable, fast-growing enterprise software stock that is already riding the automation wave and looking to catch the generative AI next.
