Power Integrations (POWI) Q2 Earnings: What To Expect

Adam Hejl /
2023/08/02 4:07 am EDT

Semiconductor designer Power Integrations (NASDAQ:POWI) will be reporting earnings tomorrow after market close. Here's what to expect.

Last quarter Power Integrations reported revenues of $106.3 million, down 41.6% year on year, in line with analyst expectations. It was a weak quarter for the company, with a decline in its operating margin and an increase in its inventory levels.

Is Power Integrations buy or sell heading into the earnings? Read our full analysis here, it's free.

This quarter analysts are expecting Power Integrations's revenue to decline 33.5% year on year to $122.4 million, a further deceleration on the 2.15% year-over-year decrease in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.34 per share.

Power Integrations 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 missed Wall St's revenue estimates three times over the last two years.

Looking at Power Integrations's peers in the semiconductors segment, some of them have already reported Q2 earnings results, giving us a hint of what we can expect. ON Semiconductor delivered top-line growth of 0.45% year on year, beating analyst estimates by 3.66% and Lattice Semiconductor reported revenues up 17.8% year on year, exceeding estimates by 1.47%. ON Semiconductor traded up 5.56% on the results, Lattice Semiconductor was down 1.16%. Read our full analysis of ON Semiconductor's results here and Lattice Semiconductor's results here.

There has been positive sentiment among investors in the semiconductors segment, with the stocks up on average 4.28% over the last month. Power Integrations is up 5.86% during the same time, and is heading into the earnings with analyst price target of $95.5, compared to share price of $97.14.

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