Earnings to Watch: Monolithic Power Systems (MPWR) to Report Q4 Results Tomorrow

Power management chip maker Monolithic Power Systems (NASDAQ:MPWR) is set to report earnings tomorrow after the market closes. Here’s what to watch for.

In the latest quarter, Monolithic Power Systems reported revenue of $474.9 million, down 4.1% year over year, in line with analyst expectations. It was a mixed quarter for the company, with significant improvement in inventory levels but a decline in gross margin.

Should Monolithic Power Systems Buy or Sell on Earnings? Read our full analysis here, it’s free.

Analysts are expecting Monolithic Power Systems revenue to decline 1.7% year over year to $452.2 million for the quarter, a further slowdown from the 36.7% year over year revenue decline the company reported in the same quarter last year. Adjusted earnings are expected to come in at $2.85 per share.

Most analysts covering the company have reaffirmed their estimates over the past thirty days, suggesting they expect the company to maintain its earnings trajectory. The company has missed Wall Street revenue estimates just once over the past two years and has beaten expectations by an average of 2.2%.

Looking at Monolithic Power Systems’ competitors in the analog semiconductor space, some of them have already announced Q4 results, which gives us a hint of what to expect. MACOM’s revenue fell 12.7% year over year, beating analyst estimates by 2.9%, while NXP Semiconductors saw revenue grow 3.3% year over year, beating estimates by 0.7%. MACOM saw its results grow 4.3%, while NXP Semiconductors saw its results grow 2.9%.

Read our full analysis of MACOM’s results here and NXP Semiconductors’ results here.

Investors in the analog semiconductor space are in positive spirits, with shares up an average of 3% over the past month. Monolithic Power Systems is up 9.4% in the same time frame and is on track for profit with an analyst price target of $632.8, compared to a share price of $646.2.

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The author does not own shares in any of the companies mentioned.