8796

Earnings To Watch: Monolithic Power Systems (MPWR) Reports Q2 Results Tomorrow


Radek Strnad /
2022/07/31 5:12 am EDT
Add to Watchlist

Power management chips maker Monolithic Power Systems (NASDAQ: MPWR) will be reporting earnings tomorrow afternoon. Here's what to look for.

Last quarter Monolithic Power Systems reported revenues of $377.7 million, up 48.4% year on year, beating analyst revenue expectations by 4.8%. It was a very strong quarter for the company, with a beat on the bottom line and a very optimistic guidance for the next quarter.

Is Monolithic Power Systems buy or sell heading into the earnings? Read our full analysis here, it's free.

This quarter analysts are expecting Monolithic Power Systems's revenue to grow 46.7% year on year to $430.5 million, slowing down from the 57.5% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $2.94 per share.

Monolithic Power Systems Total Revenue

Majority of analysts covering the company have reconfirmed their estimates over the last thirty days, suggesting they are expecting the business to stay the course heading into the earnings. The company has a history of exceeding Wall St's expectations, beating revenue estimates every single time over the past two years on average by 4.27%.

Looking at Monolithic Power Systems's peers in the analog semiconductors segment, some of them have already reported Q2 earnings results, giving us a hint of what we can expect. NXP Semiconductors delivered top-line growth of 27.5% year on year, beating analyst estimates by 1.43% and Texas Instruments reported revenues up 13.7% year on year, exceeding estimates by 12.1%. NXP Semiconductors traded flat on the results, and Texas Instruments was up 1.34%. Read our full analysis of NXP Semiconductors's results here and Texas Instruments's results here.

There has been positive sentiment among investors in the analog semiconductors segment, with the stocks up on average 18.5% over the last month. Monolithic Power Systems is up 26.6% during the same time, and is heading into the earnings with analyst price target of $545.3, compared to share price of $465.79.

One way to find opportunities in the market is to watch for generational shifts in the economy. Almost every company is slowly finding itself becoming a technology company and facing cybersecurity risks and as a result, the demand for cloud-native cybersecurity is skyrocketing. This company is leading a massive technological shift in the industry and with revenue growth of 70% year on year and best-in-class SaaS metrics it should definitely be on your radar.

The author has no position in any of the stocks mentioned.