Monolithic Power Systems, Inc. ( MPWR Quick Quote MPWR - Free Report) is scheduled to report third-quarter 2021 results on Oct 28. For third-quarter 2021, the company projects revenues between $309 million and $321 million. The Zacks Consensus Estimate for revenues is pegged at $315.8 million, which suggests year-over-year growth of 21.7%. The consensus mark for earnings has been steady at $2.00 that indicates an increase of 18.3% year over year. The company has a trailing four-quarter earnings surprise of 5.78%, on average. Q2 Recap
Monolithic Power reported second-quarter 2021 non-GAAP earnings of $1.81 per share, which beat the Zacks Consensus Estimate by 7.1%. The bottom line surged 67.6% on a year-over-year basis.
Revenues of $293.3 million increased 57.5% from the year-ago quarter’s figure and surpassed the Zacks Consensus Estimate by 4.5%. The reported figure was also above the higher end of management’s guidance of $274-$286 million. Let’s see how things are shaping up prior to this announcement. Factors to Consider
Monolithic’s third-quarter top line is expected to have benefited from continued healthy demand across most of its end-markets along with additional investment in production capacity and a diversified multi-market strategy.
Incremental gains from strong uptake of new product introductions and higher acceptance of the company’s product lines by Tier 1 customers are likely to have acted as a tailwind. Stability in the automotive sector along with increasing demand for infotainment, safety and connectivity application products is likely to have driven the top line in the automotive end-market segment. The Zacks Consensus Estimate for revenues in Automotive end markets is pegged at $50 million that suggests year-over-year growth 75.4%. Industrial end-market segment is likely to have benefited from continued demand for the segment’s power source applications’ products. The Zacks Consensus Estimate is currently pegged at $45.64 million for the Industrial end-market, which suggest an increase of 48.9% year over year. Communications end-market revenues are anticipated to have been driven by solid uptake of networking and wireless applications’ sales. The Zacks Consensus Estimate for revenues is currently pegged at $38.82 million for the Communications end-markets, indicating a decline of 29.4% year over year. Computing & Storage end-market segment’s performance is likely to have been driven by increases in market share for servers, solid uptick in storage as well as high-end notebooks on growing clout of cloud computing. The Zacks Consensus Estimate for revenues is currently pegged at $99 million for the Computing and Storage end-markets, which indicates an increase of 32% year over year. The Consumer end market segment is likely to have gained from increasing demand for wearables, gaming consoles and home-focused Internet of Things (IoT) applications. The Zacks Consensus Estimate for the segment’s revenues is currently pegged at $81 million, which suggests year-over-year growth of 15.7%. Increasing expenses on product development as well as supply chain disruptions and logistics bottlenecks stemming from the COVID-19 crisis might have affected the company’s performance in the to-be-reported quarter. What Our Model Says
Our proven model doesn’t conclusively predict an earnings beat for Monolithic Power this time around. The combination of a positive
Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here. Monolithic Power has an Earnings ESP of 0.00% and a Zacks Rank #2. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter. Stocks to Consider
Here are some stocks, which you may consider, as our proven model shows that these have the right mix of elements to beat estimates this time around:
MaxLinear ( MXL Quick Quote MXL - Free Report) has an Earnings ESP of +5.57% and a Zacks Rank of 2. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. CACI International ( CACI Quick Quote CACI - Free Report) has an Earnings ESP of +4.43% and carries a Zacks Rank of 2, at present. Silicon Motion Technology Corporation ( SIMO Quick Quote SIMO - Free Report) has an Earnings ESP of +2.79% and currently carries a Zacks Rank of 2.