Power management chips maker Monolithic Power Systems (NASDAQ: MPWR) will be reporting earnings this Thursday after market close. Here’s what investors should know.
Monolithic Power Systems beat analysts’ revenue expectations by 1.9% last quarter, reporting revenues of $664.6 million, up 31% year on year. It was a strong quarter for the company, with revenue guidance for next quarter exceeding analysts’ expectations and a decent beat of analysts’ adjusted 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, analysts are expecting Monolithic Power Systems’s revenue to grow 16.5% year on year to $722.4 million, slowing from the 30.6% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $4.63 per share.
Analysts covering the company have generally 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 1.8% on average.
Looking at Monolithic Power Systems’s peers in the analog semiconductors segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Sensata Technologies’s revenues decreased 5.2% year on year, beating analysts’ expectations by 1.1%, and NXP Semiconductors reported a revenue decline of 2.4%, in line with consensus estimates. NXP Semiconductors traded down 3.9% following the results.
Read our full analysis of Sensata Technologies’s results here and NXP Semiconductors’s results here.
There has been positive sentiment among investors in the analog semiconductors segment, with share prices up 10% on average over the last month. Monolithic Power Systems is up 23.2% during the same time and is heading into earnings with an average analyst price target of $1,022 (compared to the current share price of $1,092).
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