Monolithic Power Systems (MPWR) Reports Earnings Tomorrow. What To Expect

Kayode Omotosho /
2023/02/07 4:31 am EST

Power management chips maker Monolithic Power Systems (NASDAQ: MPWR) will be announcing earnings results tomorrow after the bell. Here's what to look for.

Last quarter Monolithic Power Systems reported revenues of $495.4 million, up 53.1% year on year, in line with analyst expectations. It was a decent quarter for the company, with a significant improvement in operating margin but underwhelming revenue 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 36.8% year on year to $460.5 million, slowing down from the 44.3% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $3.13 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%.

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 of what we can expect. MACOM Technology delivered top-line growth of 12.8% year on year, beating analyst estimates by 0.29% and Microchip Technology reported revenues up 23.4% year on year, exceeding estimates by 0.77%. MACOM Technology traded down 1.91% on the results, Microchip Technology was down 2.14%. Read our full analysis of MACOM Technology's results here and Microchip Technology's results here.

There has been positive sentiment among investors in the analog semiconductors segment, with the stocks up on average 13.1% over the last month. Monolithic Power Systems is up 17.2% during the same time, and is heading into the earnings with analyst price target of $483.30, compared to share price of $449.68.

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