Power management chips maker Monolithic Power Systems (NASDAQ: MPWR) will be reporting results this Thursday after market close. Here’s what you need to know.
Monolithic Power Systems beat analysts’ revenue expectations by 2% last quarter, reporting revenues of $737.2 million, up 18.9% year on year. It was a strong quarter for the company, with a significant improvement in its inventory levels and revenue guidance for next quarter topping analysts’ expectations.
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 19.4% year on year to $742.4 million, slowing from the 36.9% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $4.74 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 2% on average.
Looking at Monolithic Power Systems’s peers in the analog semiconductors segment, some have already reported their Q4 results, giving us a hint as to what we can expect. Skyworks Solutions’s revenues decreased 3.1% year on year, beating analysts’ expectations by 3.4%, and NXP Semiconductors reported revenues up 7.2%, topping estimates by 0.7%. NXP Semiconductors traded down 4.5% following the results.
Read our full analysis of Skyworks Solutions’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 11.2% on average over the last month. Monolithic Power Systems is up 22.5% during the same time and is heading into earnings with an average analyst price target of $1,221 (compared to the current share price of $1,166).
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