Monolithic Power Systems (MPWR) To Report Earnings Tomorrow: Here Is What To Expect

Radek Strnad /
2022/10/26 3:05 am EDT

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

Last quarter Monolithic Power Systems reported revenues of $461 million, up 57.1% year on year, beating analyst revenue expectations by 7.06%. It was an exceptional quarter for the company, with a beat on the bottom line and a significant improvement in operating margin.

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This quarter analysts are expecting Monolithic Power Systems's revenue to grow 51.6% year on year to $490.7 million, improving on the 24.7% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $3.49 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 3.94%.

Looking at Monolithic Power Systems's peers in the analog semiconductors segment, some of them have already reported Q3 earnings results, giving us a hint of what we can expect. Texas Instruments delivered top-line growth of 12.8% year on year, beating analyst estimates by 1.9% and Sensata Technologies reported revenues up 7.07% year on year, exceeding estimates by 1.23%. Texas Instruments traded down 4.74% on the results, and Sensata was flat on the results. Read our full analysis of Texas Instruments's results here and Sensata Technologies's results here.

Investors in the analog semiconductors segment have had steady hands going into the earnings, with the stocks down on average 0.04% over the last month. Monolithic Power Systems is down 8.66% during the same time, and is heading into the earnings with analyst price target of $543.1, compared to share price of $342.16.

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