Monolithic Power Systems (MPWR, $152.33) beats Q3 earnings and revenue estimates
Monolithic Power Systems, Inc. exceeded analysts expectations on Q3 earnings and revenue.
The provider of power semiconductor solutions reported third-quarter 2019 non-GAAP earnings of $1.08 per share, which edged past the Zacks Consensus Estimate by a couple of cents. The EPS is also + 1.9% higher on a year-over-year basis.
Revenues increased +5.5% year-over-year to $168.8 million, beating Zacks Consensus Estimate of $165 million.
While the company’s DC to DC segment (94.6% of total revenues) revenues increased +8.1% year-over-year, its Lighting Control (5.4% of total revenues) sales declined -25.8%.
Computing & Storage (31.3% of total revenues) revenues increased +10.8%, thanks to successes from AI applications and high-end servers . Industrial (17.1%) revenues increased +16.1%, on the back of increased adoption of point of sales systems, security applications and smart meters. Automotive (14.5%) revenues rose +23.5%, on demand from applications in smart lighting, infotainment and autonomous driving.
On the other hand, Communications (11.1%) revenues fell - 1.9%, and Consumer (26%) revenues dropped -9.4% .
Monolithic’s overall Non-GAAP gross margin contracted -50 bps from the year-ago quarter to 55.6%. Non-GAAP operating income grew +4.4% year over year, while Non-GAAP operating margin contracted -30 bps from the year-ago quarter to 30.4%.
Looking ahead, the company is expecting fourth quarter revenues to range between $160 million to $166 million, compared to the Zacks Consensus Estimate of $162.3 million.
Monolithic has projected its non-GAAP gross margin to range between 55.2% and 55.8%.
MPWR's RSI Oscillator ascends from oversold territory
The RSI Oscillator for MPWR moved out of oversold territory on March 04, 2025. This could be a sign that the stock is shifting from a downward trend to an upward trend. Traders may want to buy the stock or call options. The A.I.dvisor looked at 23 similar instances when the indicator left oversold territory. In of the 23 cases the stock moved higher. This puts the odds of a move higher at .
Technical Analysis (Indicators)
Bullish Trend Analysis
The Momentum Indicator moved above the 0 level on March 24, 2025. You may want to consider a long position or call options on MPWR as a result. In of 93 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are .
The Moving Average Convergence Divergence (MACD) for MPWR just turned positive on March 17, 2025. Looking at past instances where MPWR's MACD turned positive, the stock continued to rise in of 46 cases over the following month. The odds of a continued upward trend are .
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where MPWR advanced for three days, in of 338 cases, the price rose further within the following month. The odds of a continued upward trend are .
MPWR may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.
Bearish Trend Analysis
The Stochastic Oscillator may be shifting from an upward trend to a downward trend. In of 66 cases where MPWR's Stochastic Oscillator exited the overbought zone, the price fell further within the following month. The odds of a continued downward trend are .
MPWR moved below its 50-day moving average on March 18, 2025 date and that indicates a change from an upward trend to a downward trend.
The 10-day moving average for MPWR crossed bearishly below the 50-day moving average on March 05, 2025. This indicates that the trend has shifted lower and could be considered a sell signal. In of 15 past instances when the 10-day crossed below the 50-day, the stock continued to move higher over the following month. The odds of a continued downward trend are .
Following a 3-day decline, the stock is projected to fall further. Considering past instances where MPWR declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
The Aroon Indicator for MPWR entered a downward trend on March 13, 2025. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating very strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating low risk on high returns. The average Profit vs. Risk Rating rating for the industry is 74, placing this stock better than average.
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating steady price growth. MPWR’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is fair valued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (9.149) is normal, around the industry mean (9.662). P/E Ratio (16.437) is within average values for comparable stocks, (70.102). Projected Growth (PEG Ratio) (1.920) is also within normal values, averaging (2.410). Dividend Yield (0.008) settles around the average of (0.022) among similar stocks. P/S Ratio (13.316) is also within normal values, averaging (36.112).
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to worse than average earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
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General Information
a developer of proprietary, advanced analog and mixed-signal semiconductors
Industry Semiconductors