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Valued at a market cap of $28.7 billion, Monolithic Power Systems, Inc. (MPWR) designs, develops, markets, and sells semiconductor-based power electronics solutions for the storage and computing, automotive, enterprise data, consumer, communications, and industrial markets. The Kirkland, Washington-based company is expected to release its fiscal Q4 earnings results on Wednesday, Feb. 5.
Ahead of this event, analysts expect the semiconductor company to report a profit of $3.13 per share, up 53.4% from $2.04 per share in the year-ago quarter. The company has surpassed Wall Street's earnings estimates in one of the last four quarters while missing on three other occasions. Its core FFO of $2.21 per share in the previous quarter outpaced the consensus estimates by 1.4%.
For fiscal 2024, analysts expect MPWR to report an EPS of $10.46, up 19.1% from $8.78 in fiscal 2023.
Shares of MPWR have gained 1.9% over the past 52 weeks, massively underperforming both the S&P 500 Index's ($SPX) 22.1% rise and the Technology Select Sector SPDR Fund’s (XLK) 18.5% return over the same time frame.
Shares of MPWR crashed 17.5% following its Q3 earnings release on Oct. 30, despite delivering better-than-expected Q3 revenues of $620.1 million and adjusted earnings of $4.06 per share. Moreover, the top-line figure improved by a notable 30.6% from the year-ago quarter, while the bottom line climbed 31.8% year-over-year. However, the company’s fourth-quarter outlook disappointed the investors and overshadowed the positives. Noting the delay in Nvidia Blackwell chips, Monolithic expects the fourth-quarter revenues to be just $610 million at the midpoint, implying a quarter-to-quarter drop. This might have raised investor concerns regarding MPWR's near-term growth and led to its downward price movement.
Wall Street analysts are moderately optimistic about Monolithic’s stock, with a "Moderate Buy" rating overall. Among 13 analysts covering the stock, eight recommend "Strong Buy," two suggest “Moderate Buy,” and three indicate “Hold.”
The average price target for MPWR is $796.09, which indicates a massive 35% potential upside from the current 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 is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
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