What To Expect From Monolithic Power Systems’ (MPWR) Q2 Earnings

Jabin Bastian /
2023/07/30 7:17 am EDT

Power management chips maker Monolithic Power Systems (NASDAQ: MPWR) will be reporting earnings tomorrow after market close. Here's what investors should know.

Last quarter Monolithic Power Systems reported revenues of $451.1 million, up 19.4% year on year, in line with analyst expectations. It was a weaker quarter for the company, with underwhelming revenue guidance for the next quarter.

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This quarter analysts are expecting Monolithic Power Systems's revenue to decline 4.38% year on year to $440.8 million, a significant deceleration on the 57.2% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $2.81 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 3.03%.

Looking at Monolithic Power Systems' peers in the semiconductors segment, some of them have already reported Q2 earnings results, giving us a hint of what we can expect. SMART's revenues decreased 17.1% year on year, beating analyst estimates by 2.2% and Sensata Technologies reported revenues up 4.07% year on year, exceeding estimates by 3.47%. SMART traded up 5.38% on the results, and Sensata was flat after reporting. Read our full analysis of SMART's results here and Sensata Technologies' results here.

Investors in the semiconductors segment have had steady hands going into the earnings, with the stocks up on average 2.78% over the last month. Monolithic Power Systems is up 0.55% during the same time, and is heading into the earnings with analysts'average price target of $563.92, compared to share price of $545.55.

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