Here's What to Expect From Monolithic Power Systems' Next Earnings Report

Barchart · 10/18 07:09

Based in Kirkland, Washington, Monolithic Power Systems, Inc. (MPWR) designs, develops, markets, and sells semiconductor-based power electronics solutions for the storage and computing, automotive, enterprise data, consumer, communications, and industrial markets. Valued at a market cap of $44.1 billion, the company is expected to announce its fiscal Q3 earnings results after the market closes on Wednesday, Oct. 30.

Ahead of this event, analysts project the semiconductor company to report a profit of $3.04 per share, up 22.1% from $2.49 per share in the year-ago quarter. The company has surpassed Wall Street's bottom-line estimates in two of the last four quarters while missing on other two occasions. In Q2, the company reported an adjusted EPS of $3.17, which topped the consensus estimates of $3.07 and increased 12.4% from a year ago. This was primarily driven by a 290% annual revenue growth in its enterprise data segment, fueled by solid demand for AI power solutions. It offset a decline in revenues across all other segments.

For fiscal 2024, analysts expect MPWR to report an EPS of $10.41, up 18.6% from $8.78 in fiscal 2023. Moreover, EPS is expected to grow 34.1% year-over-year to $13.96 in fiscal 2025.

Shares of MPWR have rallied 45.6% on a YTD basis, significantly outperforming both the S&P 500 Index's ($SPX) 22.5% surge and the Technology Select Sector SPDR Fund’s (XLK) 19.5% return over the same period.

MPWR’s constant innovation, demonstrated by its leadership in miniaturization, and its diverse portfolio, which includes over 1,700 patents coupled with a surge in demand for AI power solutions and the company’s strategic partnerships, including the one with Nvidia (NVDA), has contributed to its upward price movement.

Moreover, the stock closed up 1.4% after its strong Q2 earnings release on Aug. 1. Along with its adjusted earnings, its revenues of $507.4 million surpassed the Wall Street estimates of $489.9 million and increased 15% from a year ago.

Analysts' consensus view on Monolithic Power Systems’ stock is optimistic, with a "Strong Buy" rating overall. Among 11 analysts covering the stock, eight recommend “Strong Buy," two suggest "Moderate Buy," and one indicates a “Hold” rating. This configuration is slightly less bullish than three months ago, with nine analysts suggesting a "Strong Buy."

The average analyst price target for MPWR is $971.75, indicating a 5.8% potential upside from the current levels.

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On the date of publication, Neharika Jain did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.