Monolithic Power Systems Gears Up for Q4 Earnings Report Amid Mixed Performance
Market Expectations and Company Performance
Valued at a market cap of $28.7 billion, Monolithic Power Systems, Inc. (MPWR) specializes in semiconductor-based power electronics solutions for diverse markets including storage and computing, automotive, enterprise data, consumer, communications, and industrial sectors. The company, based in Kirkland, Washington, is set to announce its fiscal Q4 earnings on Wednesday, February 5.
Analysts project that the semiconductor company will report a profit of $3.13 per share for the quarter, reflecting a significant increase of 53.4% from $2.04 per share in the same quarter last year. In recent quarters, MPWR has only exceeded Wall Street’s earnings expectations once out of the last four tries. In the previous quarter, its core FFO of $2.21 per share was 1.4% above consensus estimates.
Future Projections for Fiscal 2024
Looking ahead to fiscal 2024, analysts anticipate MPWR will report earnings per share (EPS) of $10.46, marking a 19.1% increase from $8.78 in fiscal 2023.
Stock Performance Compared to the Market
Over the past year, MPWR shares have climbed 1.9%, a stark contrast to the S&P 500 Index’s ($SPX) rise of 22.1% and the Technology Select Sector SPDR Fund’s (XLK) return of 18.5% in the same period.
Q3 Earnings Release Fallout
Following its Q3 earnings report on October 30, shares of MPWR fell sharply by 17.5%. Although the company reported better-than-expected Q3 revenues of $620.1 million and adjusted earnings of $4.06 per share, the fourth-quarter outlook disappointed investors. Notably, the revenues increased by 30.6% compared to the previous year, and earnings rose by 31.8%. However, delays in Nvidia’s Blackwell chips led MPWR to project fourth-quarter revenues at just $610 million, indicating a potential decline from the prior quarter, which raised concerns about the company’s immediate growth prospects.
Analyst Sentiment
Wall Street analysts hold a moderately optimistic view of Monolithic’s stock, giving it an overall “Moderate Buy” rating. Of the 13 analysts covering the company, eight recommend “Strong Buy,” two suggest “Moderate Buy,” and three indicate “Hold.” The average price target for MPWR stands at $796.09, suggesting a strong potential upside of 35% from its current trading levels.
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 are solely for informational purposes. For further information, please view the Barchart Disclosure Policy here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
