Earnings To Watch: Monolithic Power Systems (MPWR) Reports Q4 Results Tomorrow

Radek Strnad /
2024/02/06 2:02 am EST

Power management chips maker Monolithic Power Systems (NASDAQ:MPWR) will be reporting results tomorrow after market close. Here's what to look for.

Last quarter Monolithic Power Systems reported revenues of $474.9 million, down 4.1% year on year, in line with analyst expectations. It was a mixed quarter for the company, with a significant improvement in its inventory levels but a decline in its gross margin.

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 decline 1.7% year on year to $452.2 million, a further deceleration on the 36.7% year-over-year decrease in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $2.85 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 only missed Wall St's revenue estimates once over the last two years, and has on average exceeded top line expectations by 2.2%.

Looking at Monolithic Power Systems's peers in the analog semiconductors segment, some of them have already reported Q4 earnings results, giving us a hint what we can expect. MACOM's revenues decreased 12.7% year on year, beating analyst estimates by 2.9% and NXP Semiconductors reported revenues up 3.3% year on year, exceeding estimates by 0.7%. MACOM traded up 4.3% on the results, and NXP Semiconductors was up 2.9%.

Read our full analysis of MACOM's results here and NXP Semiconductors's results here.

There has been positive sentiment among investors in the analog semiconductors segment, with the stocks up on average 3% over the last month. Monolithic Power Systems is up 9.4% during the same time, and is heading into the earnings with with analyst price target of $632.8, compared to share price of $646.2.

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