Power Integrations (POWI) Q3 Earnings: What To Expect

Radek Strnad /
2023/11/06 2:01 am EST

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

Last quarter Power Integrations reported revenues of $123.2 million, down 33% year on year, in line with analyst expectations. It was a weaker quarter for the company, with underwhelming revenue guidance for the next quarter and a decline in its operating margin.

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 18.6% year on year to $130.4 million, a further deceleration on the 9.4% year-over-year decrease in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.47 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 analog semiconductors segment, some of them have already reported Q3 earnings results, giving us a hint what we can expect. Impinj's revenues decreased 4.8% year on year, beating analyst estimates by 0.5% and Skyworks Solutions reported revenue decline of 13.4% year on year, exceeding estimates by 0.3%. Impinj traded up 20.7% on the results, Skyworks Solutions was down 7.0%.

Read our full analysis of Impinj's results here and Skyworks Solutions's results here.

Tech stocks have been under pressure and while some of the analog semiconductors stocks have fared somewhat better, they have not been spared, with share price declining 4.4% over the last month. Power Integrations is down 1.2% during the same time, and is heading into the earnings with analyst price target of $88.7, compared to share price of $74.82.

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