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%.
Contributor
Sergey Savastiouk, Ph.D. has a degree in Applied Mathematics from Moscow University and has extensive experience as an entrepreneur, investor, manager, and mathematician. His professional expertise is in applied mathematics, mathematical modeling, system and pattern analysis, and software and hardware system integration. He has served as the CEO of several hi-tech start-up companies and nonprofit organizations, which has given him proven capabilities in business strategy for high-tech start-up companies, market assessment, company formation, team building, product development, marketing, and sales. He has published numerous articles in journals and magazines on related fields. As a retail investor, he spent 15 years developing his proprietary trading and quantitative algorithms (now Tickeron’s A.I.), which brought him significant returns in trading the stock market. His current work and goal in founding Tickeron is to bring professional, sophisticated stock market analysis capabilities to retail investors via an easy-to-use interface.
MPWR in upward trend: 10-day moving average moved above 50-day moving average on September 30, 2026
The 10-day moving average for MPWR crossed bullishly above the 50-day moving average on September 30, 2026. This indicates that the trend has shifted higher and could be considered a buy signal. In 13 of 14 past instances when the 10-day crossed above the 50-day, the stock continued to move higher over the following month. The odds of a continued upward trend are 90%.
Technical Analysis (Indicators)
Bullish Trend Analysis
The Momentum Indicator moved above the 0 level on September 18, 2026. You may want to consider a long position or call options on MPWR as a result. In 82 of 96 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are 85%.
The Moving Average Convergence Divergence (MACD) for MPWR just turned positive on September 21, 2026. Looking at past instances where MPWR's MACD turned positive, the stock continued to rise in 38 of 46 cases over the following month. The odds of a continued upward trend are 83%.
MPWR moved above its 50-day moving average on September 22, 2026 date and that indicates a change from a downward trend to an upward trend.
Following a +8.74% 3-day Advance, the price is estimated to grow further. Considering data from situations where MPWR advanced for three days, in 247 of 326 cases, the price rose further within the following month. The odds of a continued upward trend are 76%.
Bearish Trend Analysis
The 10-day RSI Indicator for MPWR moved out of overbought territory on October 07, 2026. This could be a bearish sign for the stock. Traders may want to consider selling the stock or buying put options. Tickeron's A.I.dvisor looked at 44 similar instances where the indicator moved out of overbought territory. In 34 of the 44 cases, the stock moved lower in the following days. This puts the odds of a move lower at 77%.
The Stochastic Oscillator demonstrated that the ticker has stayed in the overbought zone for 11 days. The longer the ticker stays in the overbought zone, the sooner a price pull-back is expected.
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 50 of 62 cases within the following month. The odds of a continued downward trend are 70%.
MPWR broke above its upper Bollinger Band on September 21, 2026. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
The Aroon Indicator for MPWR entered a downward trend on September 22, 2026. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
Fundamental Analysis (Ratings)
The Tickeron PE Growth Rating for this company is 4 (best 1 - 100 worst), pointing to outstanding 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.
The Tickeron Profit vs. Risk Rating rating for this company is 25 (best 1 - 100 worst), indicating low risk on high returns. The average Profit vs. Risk Rating rating for the industry is 71, placing this stock better than average.
The Tickeron Price Growth Rating for this company is 30 (best 1 - 100 worst), indicating outstanding 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 SMR rating for this company is 44 (best 1 - 100 worst), indicating 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 Valuation Rating of 81 (best 1 - 100 worst) indicates that the company is slightly overvalued 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: MPWR's P/B Ratio (17.036) is slightly higher than the industry average of (7.975). P/E Ratio (82.441) is within average values for comparable stocks, (165.532). Projected Growth (PEG Ratio) (1.014) is also within normal values, averaging (3.761). Dividend Yield (0.005) settles around the average of (0.007) among similar stocks. P/S Ratio (17.153) is also within normal values, averaging (45.794).
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General Information
a developer of proprietary, advanced analog and mixed-signal semiconductors
Industry Semiconductors
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