Monolithic Power Systems Earnings: What To Look For From MPWR

Kayode Omotosho /
2022/05/02 3:53 am EDT

Power management chips maker Monolithic Power Systems (NASDAQ: MPWR) will be announcing earnings results today after market hours. Here's what you need to know.

Last quarter Monolithic Power Systems reported revenues of $336.5 million, up 44.3% year on year, beating analyst revenue expectations by 4.57%. 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 41.6% year on year to $360.4 million, slowing down from the 53.4% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $2.26 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 4.05%.

Looking at Monolithic Power Systems's peers in the analog semiconductors segment, some of them have already reported Q1 earnings results, giving us a hint of what we can expect. Texas Instruments delivered top-line growth of 14.3% year on year, beating analyst estimates by 3.65% and Sensata Technologies reported revenues up 3.52% year on year, exceeding estimates by 1.57%. Texas Instruments traded down 7.5% on the results, Sensata Technologies was flat on the results. Read our full analysis of Texas Instruments's results here and Sensata Technologies's results here.

The whole tech sector has been facing a sell-off since late last year and while some of the analog semiconductors stocks have fared somewhat better, they have not been spared, with share price declining 12.7% over the last month. Monolithic Power Systems is down 18.6% during the same time, and is heading into the earnings with analyst price target of $550.5, compared to share price of $392.24.

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