Power management chips maker Monolithic Power Systems (NASDAQ: MPWR) will be reporting earnings this Thursday after the bell. Here’s what to expect.
Monolithic Power Systems beat analysts’ revenue expectations last quarter, reporting revenues of $804.2 million, up 26.1% year on year. It was a very strong quarter for the company, with revenue guidance for next quarter exceeding analysts’ expectations and an impressive beat of analysts’ operating income estimates.
Is Monolithic Power Systems a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting Monolithic Power Systems’s revenue to grow 35.9% year on year, improving from the 31% increase it recorded in the same quarter last year.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings. Monolithic Power Systems has a history of exceeding Wall Street’s expectations.
Looking at Monolithic Power Systems’s peers in the analog semiconductors segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Texas Instruments delivered year-on-year revenue growth of 22.8%, beating analysts’ expectations by 3.8%, and NXP Semiconductors reported revenues up 19.5%, topping estimates by 0.8%. Texas Instruments traded down 3.1% following the results.
Read our full analysis of Texas Instruments’s results here and NXP Semiconductors’s results here.
In the last year or so, investors have shifted their focus from one macro dynamic to the next (AI disintermediation and AI investment to geopolitical conflict, interest rates, and the health of the wider economy). Investors in analog semiconductors stocks haven’t been spared in this environment as share prices are down 20.1% on average over the last month. Monolithic Power Systems’s stock price was unchanged during the same time and is heading into earnings with an average analyst price target of $1,777 (compared to the current share price of $1,307).
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