We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Monolithic Power (MPWR) Q1 Earnings & Revenues Top Estimates
Read MoreHide Full Article
Monolithic Power Systems, Inc. (MPWR - Free Report) reported first-quarter 2021 non-GAAP earnings of $1.46 per share, which beat the Zacks Consensus Estimate by 9.77%. Notably, the bottom line improved 53.7% on a year-over-year basis.
Revenues of $254.5 million climbed 9.2% from the year-ago quarter’s figure and surpassed the Zacks Consensus Estimate by 5.09%. On a sequential basis, the top line surged 53.5%. The reported figure was also above the higher end of management’s guidance of $236-$248 million.
Strong demand across each of the end-markets, and a diversified multi-market strategy drove year-over-year growth. The company has been benefiting from robust adoption of new product introductions, which resulted in broad-based market share gains.
Management noted that new products introduced in the last three years contributed to 37% of first-quarter 2021 revenues. Momentum in new product adoption is paving the way for accelerated growth.
Monolithic Power Systems, Inc. Price, Consensus and EPS Surprise
Revenues in the DC to DC segment (94.9% of total revenues) soared 53.9% year over year to $241.4 million. Moreover, Lighting Control (5.1% of total revenues) revenues improved 46.3% to $13 million.
Revenues by End Market
Computing & Storage (26% of total revenues) revenues increased 29.9% year over year to $67.5 million. The market’s robust performance was driven by broad-based sales strength, solid uptick in storage, and high-end notebooks on growing clout of cloud computing.
Consumer (26%) revenues rallied 77.1% from the year-ago quarter to $66.2 million, reflecting gains from increase in overall demand of wearables, gaming consoles, and home-focused IoT applications. Also, improvement of the company’s new mobile device charging IC aided performance.
Industrial (16%) revenues surged 57.7% to $39.8 million courtesy of broad-based gains across all the company’s major product groups. Strong performance of power devices remains a tailwind.
Automotive (18%) revenues were $44.9 million, up 92.5% from the prior-year figure. The company continued sales growth in infotainment, safety and connectivity application products. Further, momentum in new products introduced in 2021 aided results and is expected to boost performance in the quarters ahead.
Communications (14%) revenues advanced 29.4% to $36.1 million. The end-market gained from robust uptick in networking and wireless gateway home router sales.
Margins in Detail
Non-GAAP gross margin expanded 30 basis points (bps) from the year-ago quarter’s level to 55.8%. Management had predicted the figure between 55.4% and 56%.
Non-GAAP operating expenses amounted to $66.2 million during the reported quarter, up 43.8% year over year. As a percentage of revenues, the figure expanded 180 bps on a year-over-year basis to 27.3%.
Non-GAAP operating income climbed 65.1% year over year to $ 75.8 million. Non-GAAP operating margin (as a percentage of revenues) expanded 210 bps from the year-ago quarter’s level to 29.8%.
Balance Sheet & Cash Flow
As of Mar 31, 2021, cash, cash equivalents and short-term investments were $641.6 million, compared with $598 million reported as of Dec 31, 2020.
Monolithic Power generated operating cash flow of $77.1 million compared with $79.6 million in the prior quarter. Notably, capital spending totaled $19 million in the first quarter.
Encouraging Q2 Guidance
For second-quarter 2021, the company projects revenues between $274 million and $286 million. The Zacks Consensus Estimate for revenues is currently pegged at $251.07 million, which indicates growth of 34.8% from the year-ago reported figure.
Management anticipates non-GAAP gross margin between 55.5% and 56.1%.
Conclusion
We believe that Monolithic Power has significant prospects on account of increased demand for storage and computing, and data centers and cloud due to COVID-19-induced work-from-home trend.
Also, demand recovery across automotive end market is a tailwind.
Zacks Rank & Stocks to Consider
Currently, Monolithic Power carries a Zacks Rank #3 (Hold).
Microchip is scheduled to released quarterly results on May 6. Agilent scheduled to report quarterly results on May 25, while NVIDIA is slated to announce results on May 26.
Long-term earnings growth rate of Agilent, NVIDIA and Microchip is pegged at 9% and 15.05% 15.47%, respectively.
Infrastructure Stock Boom to Sweep America
A massive push to rebuild the crumbling U.S. infrastructure will soon be underway. It’s bipartisan, urgent, and inevitable. Trillions will be spent. Fortunes will be made.
The only question is “Will you get into the right stocks early when their growth potential is greatest?”
Zacks has released a Special Report to help you do just that, and today it’s free. Discover 7 special companies that look to gain the most from construction and repair to roads, bridges, and buildings, plus cargo hauling and energy transformation on an almost unimaginable scale.
Image: Bigstock
Monolithic Power (MPWR) Q1 Earnings & Revenues Top Estimates
Monolithic Power Systems, Inc. (MPWR - Free Report) reported first-quarter 2021 non-GAAP earnings of $1.46 per share, which beat the Zacks Consensus Estimate by 9.77%. Notably, the bottom line improved 53.7% on a year-over-year basis.
Revenues of $254.5 million climbed 9.2% from the year-ago quarter’s figure and surpassed the Zacks Consensus Estimate by 5.09%. On a sequential basis, the top line surged 53.5%. The reported figure was also above the higher end of management’s guidance of $236-$248 million.
Strong demand across each of the end-markets, and a diversified multi-market strategy drove year-over-year growth. The company has been benefiting from robust adoption of new product introductions, which resulted in broad-based market share gains.
Management noted that new products introduced in the last three years contributed to 37% of first-quarter 2021 revenues. Momentum in new product adoption is paving the way for accelerated growth.
Monolithic Power Systems, Inc. Price, Consensus and EPS Surprise
Monolithic Power Systems, Inc. price-consensus-eps-surprise-chart | Monolithic Power Systems, Inc. Quote
Quarter in Details
Revenues by Product Family
Revenues in the DC to DC segment (94.9% of total revenues) soared 53.9% year over year to $241.4 million. Moreover, Lighting Control (5.1% of total revenues) revenues improved 46.3% to $13 million.
Revenues by End Market
Computing & Storage (26% of total revenues) revenues increased 29.9% year over year to $67.5 million. The market’s robust performance was driven by broad-based sales strength, solid uptick in storage, and high-end notebooks on growing clout of cloud computing.
Consumer (26%) revenues rallied 77.1% from the year-ago quarter to $66.2 million, reflecting gains from increase in overall demand of wearables, gaming consoles, and home-focused IoT applications. Also, improvement of the company’s new mobile device charging IC aided performance.
Industrial (16%) revenues surged 57.7% to $39.8 million courtesy of broad-based gains across all the company’s major product groups. Strong performance of power devices remains a tailwind.
Automotive (18%) revenues were $44.9 million, up 92.5% from the prior-year figure. The company continued sales growth in infotainment, safety and connectivity application products. Further, momentum in new products introduced in 2021 aided results and is expected to boost performance in the quarters ahead.
Communications (14%) revenues advanced 29.4% to $36.1 million. The end-market gained from robust uptick in networking and wireless gateway home router sales.
Margins in Detail
Non-GAAP gross margin expanded 30 basis points (bps) from the year-ago quarter’s level to 55.8%. Management had predicted the figure between 55.4% and 56%.
Non-GAAP operating expenses amounted to $66.2 million during the reported quarter, up 43.8% year over year. As a percentage of revenues, the figure expanded 180 bps on a year-over-year basis to 27.3%.
Non-GAAP operating income climbed 65.1% year over year to $ 75.8 million. Non-GAAP operating margin (as a percentage of revenues) expanded 210 bps from the year-ago quarter’s level to 29.8%.
Balance Sheet & Cash Flow
As of Mar 31, 2021, cash, cash equivalents and short-term investments were $641.6 million, compared with $598 million reported as of Dec 31, 2020.
Monolithic Power generated operating cash flow of $77.1 million compared with $79.6 million in the prior quarter. Notably, capital spending totaled $19 million in the first quarter.
Encouraging Q2 Guidance
For second-quarter 2021, the company projects revenues between $274 million and $286 million. The Zacks Consensus Estimate for revenues is currently pegged at $251.07 million, which indicates growth of 34.8% from the year-ago reported figure.
Management anticipates non-GAAP gross margin between 55.5% and 56.1%.
Conclusion
We believe that Monolithic Power has significant prospects on account of increased demand for storage and computing, and data centers and cloud due to COVID-19-induced work-from-home trend.
Also, demand recovery across automotive end market is a tailwind.
Zacks Rank & Stocks to Consider
Currently, Monolithic Power carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader technology sector worth consideration are Agilent Technologies (A - Free Report) , Microchip (MCHP - Free Report) and NVIDIA (NVDA - Free Report) . All the stocks carry a Zacks Rank #2 (Buy), at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Microchip is scheduled to released quarterly results on May 6. Agilent scheduled to report quarterly results on May 25, while NVIDIA is slated to announce results on May 26.
Long-term earnings growth rate of Agilent, NVIDIA and Microchip is pegged at 9% and 15.05% 15.47%, respectively.
Infrastructure Stock Boom to Sweep America
A massive push to rebuild the crumbling U.S. infrastructure will soon be underway. It’s bipartisan, urgent, and inevitable. Trillions will be spent. Fortunes will be made.
The only question is “Will you get into the right stocks early when their growth potential is greatest?”
Zacks has released a Special Report to help you do just that, and today it’s free. Discover 7 special companies that look to gain the most from construction and repair to roads, bridges, and buildings, plus cargo hauling and energy transformation on an almost unimaginable scale.
Download FREE: How to Profit from Trillions on Spending for Infrastructure>>