Preview: Monolithic Power Systems's Earnings

Monolithic Power Systems MPWR is gearing up to announce its quarterly earnings on Thursday, 2025-05-01. Here's a quick overview of what investors should know before the release.

Analysts are estimating that Monolithic Power Systems will report an earnings per share (EPS) of $4.00.

The market awaits Monolithic Power Systems's announcement, with hopes high for news of surpassing estimates and providing upbeat guidance for the next quarter.

It's important for new investors to understand that guidance can be a significant driver of stock prices.

Earnings Track Record

Last quarter the company beat EPS by $0.11, which was followed by a 8.98% increase in the share price the next day.

Here's a look at Monolithic Power Systems's past performance and the resulting price change:

Market Performance of Monolithic Power Systems's Stock

Shares of Monolithic Power Systems were trading at $586.74 as of April 29. Over the last 52-week period, shares are down 19.11%. Given that these returns are generally negative, long-term shareholders are likely a little upset going into this earnings release.

Analysts' Take on Monolithic Power Systems

For investors, staying informed about market sentiments and expectations in the industry is paramount. This analysis provides an exploration of the latest insights on Monolithic Power Systems.

Analysts have given Monolithic Power Systems a total of 12 ratings, with the consensus rating being Neutral. The average one-year price target is $775.83, indicating a potential 32.23% upside.

Analyzing Analyst Ratings Among Peers

In this analysis, we delve into the analyst ratings and average 1-year price targets of Microchip Technology, GLOBALFOUNDRIES and ON Semiconductor, three key industry players, offering insights into their relative performance expectations and market positioning.

• Analysts currently favor an Buy trajectory for Microchip Technology, with an average 1-year price target of $63.81, suggesting a potential 89.12% downside.
• Analysts currently favor an Neutral trajectory for GLOBALFOUNDRIES, with an average 1-year price target of $44.83, suggesting a potential 92.36% downside.
• Analysts currently favor an Neutral trajectory for ON Semiconductor, with an average 1-year price target of $57.15, suggesting a potential 90.26% downside.

Key Findings: Peer Analysis Summary

The peer analysis summary presents essential metrics for Microchip Technology, GLOBALFOUNDRIES and ON Semiconductor, unveiling their respective standings within the industry and providing valuable insights into their market positions and comparative performance.

Key Takeaway:

Monolithic Power Systems ranks highest in Revenue Growth among its peers. It also leads in Gross Profit margin. However, it falls behind in Consensus rating compared to its peers. In terms of Return on Equity, Monolithic Power Systems is positioned at the top among the listed companies.

Discovering Monolithic Power Systems: A Closer Look

Monolithic Power Systems is an analog and mixed-signal chipmaker, specializing in power management solutions. The firm's mission is to reduce total energy consumption in end systems, and it serves the computing, automotive, industrial, communications, and consumer end markets. MPS uses a fabless manufacturing model, partnering with third-party chip foundries to host its proprietary BCD process technology.

Financial Milestones: Monolithic Power Systems's Journey

Market Capitalization Analysis: Positioned below industry benchmarks, the company's market capitalization faces constraints in size. This could be influenced by factors such as growth expectations or operational capacity.

Revenue Growth: Monolithic Power Systems's revenue growth over a period of 3 months has been noteworthy. As of 31 December, 2024, the company achieved a revenue growth rate of approximately 36.93%. This indicates a substantial increase in the company's top-line earnings. As compared to its peers, the company achieved a growth rate higher than the average among peers in Information Technology sector.

Net Margin: Monolithic Power Systems's net margin excels beyond industry benchmarks, reaching 233.14%. This signifies efficient cost management and strong financial health.

Return on Equity (ROE): Monolithic Power Systems's ROE surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 52.73% ROE, the company effectively utilizes shareholder equity capital.

Return on Assets (ROA): Monolithic Power Systems's ROA stands out, surpassing industry averages. With an impressive ROA of 44.79%, the company demonstrates effective utilization of assets and strong financial performance.

Debt Management: Monolithic Power Systems's debt-to-equity ratio is below the industry average. With a ratio of 0.0, the company relies less on debt financing, maintaining a healthier balance between debt and equity, which can be viewed positively by investors.

To track all earnings releases for Monolithic Power Systems visit their earnings calendar on our site.

This article was generated by Benzinga's automated content engine and reviewed by an editor.