Power management chips maker Monolithic Power Systems (NASDAQ:MPWR) will be reporting results this Thursday after the bell. Here’s what you need to know.
Monolithic Power Systems beat analysts’ revenue expectations by 0.7% last quarter, reporting revenues of $637.6 million, up 39.2% year on year. It was a mixed quarter for the company, with a narrow beat of analysts’ EPS estimates but an increase in its inventory levels.
Is Monolithic Power Systems a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Monolithic Power Systems’s revenue to grow 28.5% year on year to $652.1 million, improving from the 15% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $4.12 per share.
The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Monolithic Power Systems has a history of exceeding Wall Street’s expectations, beating revenue estimates every single time over the past two years by 1.6% on average.
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 16.4%, beating analysts’ expectations by 2%, and Sensata Technologies reported a revenue decline of 8.9%, topping estimates by 1.1%. Texas Instruments traded down 13.3% following the results.
Read our full analysis of Texas Instruments’s results here and Sensata Technologies’s results here.
There has been positive sentiment among investors in the analog semiconductors segment, with share prices up 4.6% 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 $809.92 (compared to the current share price of $726).
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