GET DAILY SIGNALSMonolithic 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 sees its Stochastic Oscillator ascending out of oversold territory
On October 28, 2026, the Stochastic Oscillator for MPWR moved out of oversold territory and this could be a bullish sign for the stock. Traders may want to buy the stock or buy call options. Tickeron's A.I.dvisor looked at 59 instances where the indicator left the oversold zone. In 47 of the 59 cases the stock moved higher in the following days. This puts the odds of a move higher at over 80%.
Technical Analysis (Indicators)
Bullish Trend Analysis
Following a +3.77% 3-day Advance, the price is estimated to grow further. Considering data from situations where MPWR advanced for three days, in 239 of 318 cases, the price rose further within the following month. The odds of a continued upward trend are 75%.
MPWR may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.
The Aroon Indicator entered an Uptrend today. In 223 of 283 cases where MPWR Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are 79%.
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 42 similar instances where the indicator moved out of overbought territory. In 32 of the 42 cases, the stock moved lower in the following days. This puts the odds of a move lower at 76%.
The Momentum Indicator moved below the 0 level on November 02, 2026. You may want to consider selling the stock, shorting the stock, or exploring put options on MPWR as a result. In 79 of 97 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are 81%.
The Moving Average Convergence Divergence Histogram (MACD) for MPWR turned negative on October 12, 2026. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 46 similar instances when the indicator turned negative. In 30 of the 46 cases the stock turned lower in the days that followed. This puts the odds of success at 65%.
MPWR moved below its 50-day moving average on October 14, 2026 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 October 21, 2026. This indicates that the trend has shifted lower and could be considered a sell signal. In 12 of 14 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 86%.
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%.
Fundamental Analysis (Ratings)
The Tickeron PE Growth Rating for this company is 3 (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 31 (best 1 - 100 worst), indicating low risk on high returns. The average Profit vs. Risk Rating rating for the industry is 78, placing this stock better than average.
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 Price Growth Rating for this company is 62 (best 1 - 100 worst), indicating fairly steady price growth. MPWR’s price grows at a lower rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Valuation Rating of 87 (best 1 - 100 worst) indicates that the company is significantly 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 (15.693) is slightly higher than the industry average of (5.894). P/E Ratio (75.528) is within average values for comparable stocks, (16.337). Projected Growth (PEG Ratio) (1.014) is also within normal values, averaging (3.803). Dividend Yield (0.006) settles around the average of (0.012) among similar stocks. P/S Ratio (17.153) is also within normal values, averaging (46.468).
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General Information
a developer of proprietary, advanced analog and mixed-signal semiconductors
Industry Semiconductors
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