Monolithic Power Systems Q4 Earnings: What To Look For From MPWR

Adam Hejl /
2022/02/09 5:17 pm EST
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Power management chips maker Monolithic Power Systems (NASDAQ: MPWR) will be announcing earnings results tomorrow after market hours. Here's what investors should know.

Last quarter Monolithic Power Systems reported revenues of $323.5 million, up 24.7% year on year, beating analyst revenue expectations by 2.36%. It was a decent quarter for the company, with a very optimistic guidance for the next quarter but a decline in operating 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 grow 31.5% year on year to $306.6 million, slowing down from the 39.7% year-over-year increase in revenue the company had recorded in the same quarter last year. Earnings are expected to come in at $1.83 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 3.76%.

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. NXP Semiconductors delivered top-line growth of 21.2% year on year, beating analyst estimates by 1.19% and Microchip Technology reported revenues up 29.9% year on year, exceeding estimates by 0.63%. NXP Semiconductors traded up 1.38% on results, Microchip Technology was down 1.33%. Read our full analysis of NXP Semiconductors's results here and Microchip Technology's results here.

Triggered by the Federal Reserve's hawkish stance on interest rates, shares of technology companies have been facing sell-off in 2022 and while some of the analog semiconductors stocks have fared somewhat better, they have not been spared, with share price declining 6.49% over the last month. Monolithic Power Systems is down 5.64% during the same time, and is heading into the earnings with with analyst price target of $511.3, compared to share price of $426.98.

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.