Monolithic Power Systems (MPWR) to report earnings tomorrow: here is what to expect

Power management chips maker Monolithic Power Systems (NASDAQ:MPWR) will be reporting results this Thursday afternoon. Here’s what to look for.

Monolithic Power Systems beat analysts’ revenue expectations last quarter, reporting revenues of $980.6 million, up 47.6% year on year. It was an incredible quarter for the company, with a significant improvement in its inventory levels and a beat of analysts’ EPS 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, the market is expecting Monolithic Power Systems’s revenue to grow 57.7% year on year, improving from the 18.9% increase it recorded in the same quarter last year.

Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will 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 Q3 results, giving us a hint as to what we can expect. Texas Instruments delivered year-on-year revenue growth of 27.7%, beating analysts’ expectations by 2.6%, and Sensata Technologies reported revenues up 7.7%, topping estimates by 3.2%. Texas Instruments traded down 1.8% following the results.

Read our full analysis of Texas Instruments’s results here and Sensata Technologies’s results here.

Over the past year, investors have repeatedly shifted their focus from one macro narrative to another (AI disruption and AI capex spending to geopolitics, interest rates, and the broader health of the economy). While some of the analog semiconductors stocks have shown solid performance in this choppy environment, the group has generally underperformed, with share prices down 8.3% on average over the last month. Monolithic Power Systems is down 10.2% during the same time and is heading into earnings with an average analyst price target of $1,800 (compared to the current share price of $1,213).

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