Power management chips maker Monolithic Power Systems (NASDAQ:MPWR) will be reporting results this Thursday after market hours. Here’s what investors should know.
Monolithic Power Systems beat analysts’ revenue expectations last quarter, reporting revenues of $751.2 million, up 20.8% year on year. It was a satisfactory quarter for the company, with revenue guidance for next quarter exceeding analysts’ expectations 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 for active Edge members.
This quarter, the market is expecting Monolithic Power Systems’s revenue to grow 22.7% year on year, slowing from the 39.2% increase it recorded in the same quarter last year.
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.
Looking at Monolithic Power Systems’s peers in the analog semiconductors segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Texas Instruments delivered year-on-year revenue growth of 18.6%, beating analysts’ expectations by 6.6%, and Magnachip reported revenues up 3.3%, in line with consensus estimates. Texas Instruments traded up 19.4% following the results.
Read our full analysis of Texas Instruments’s results here and Magnachip’s results here.
There has been positive sentiment among investors in the analog semiconductors segment, with share prices up 43% on average over the last month. Monolithic Power Systems is up 50.8% during the same time and is heading into earnings with an average analyst price target of $1,418 (compared to the current share price of $1,512).
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