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Monolithic Power (MPWR) Q3 Earnings & Revenues Beat Estimates
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Monolithic Power Systems, Inc (MPWR - Free Report) reported third-quarter 2021 non-GAAP earnings of $2.06 per share, which beat the Zacks Consensus Estimate by 3%. The bottom line increased 21.9% on a year-over-year basis.
Revenues of $323.5 million rose 24.7% from the year-ago quarter’s figure and surpassed the Zacks Consensus Estimate by 2.5%. On a sequential basis, the top line surged 10.3%. The reported figure was also above the higher end of management’s guidance of $309-$321 million.
Strong demand across the automotive, industrial, computing & storage and consumer segments drove year-over-year growth.
Quarter in Detail
Revenues by Product Family
Revenues in the DC to DC segment (95% of total revenues) soared 24.2% year over year to $307.4 million. Lighting Control (5% of total revenues) revenues rallied 36.2% to $16.1 million.
Monolithic Power Systems, Inc. Price, Consensus and EPS Surprise
Computing & Storage (30.5% of total revenues) revenues increased 30.9% year over year to $98.6 million. The market’s performance was driven by increases in the market share for storage applications
Automotive (16.8%) revenues were $54.4 million, up 90.9% from the prior-year quarter’s figure. The company continued to witness sales growth in infotainment, lighting and Advanced Driver Assistance Systems or ADAS products
Industrial (16.1%) revenues surged 70.2% year over year to $52.2 million, courtesy of higher industrial meters and power sources sales.
Communications (13.8%) revenues declined 18.3% to $44.7 million.
Consumer (22.8%) revenues increased 4.8% from the year-ago quarter’s levels to $73.6 million.
Margins in Detail
Non-GAAP gross margin expanded 230 basis points (bps) from the year-ago quarter’s level to 57.8%. Management had predicted the figure between 57.6% and 58.2%.
Non-GAAP operating expenses amounted to $78.7 million during the reported quarter, up 33.1% year over year. As a percentage of revenues, the figure expanded 150 bps on a year-over-year basis to 24.3%.
Non-GAAP operating income rose 27.7% year over year to $108.4 million. Non-GAAP operating margin (as a percentage of revenues) expanded 80 bps from the year-ago quarter’s level to 33.5%.
Balance Sheet & Cash Flow
As of Sep 30, 2021, cash, cash equivalents and investments were $744.5 million compared with $672.9 million reported as of Jun 30, 2021.
Monolithic Power generated operating cash flow of $117.8 million compared with $96.9 million in the prior quarter. Capital spending totaled $18.6 million in the third quarter.
Guidance
For fourth-quarter 2021, the company projects revenues between $314 million and $326 million. The Zacks Consensus Estimate for revenues is currently pegged at $306.6 million, which indicates growth of 31.6% from the year-ago quarter’s reported figure.
Management anticipates non-GAAP gross margin between 56.3% and 56.9%.
Zacks Rank & Other Stocks to Consider
Currently, Monolithic Power carries a Zacks Rank #2 (Buy).
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Monolithic Power (MPWR) Q3 Earnings & Revenues Beat Estimates
Monolithic Power Systems, Inc (MPWR - Free Report) reported third-quarter 2021 non-GAAP earnings of $2.06 per share, which beat the Zacks Consensus Estimate by 3%. The bottom line increased 21.9% on a year-over-year basis.
Revenues of $323.5 million rose 24.7% from the year-ago quarter’s figure and surpassed the Zacks Consensus Estimate by 2.5%. On a sequential basis, the top line surged 10.3%. The reported figure was also above the higher end of management’s guidance of $309-$321 million.
Strong demand across the automotive, industrial, computing & storage and consumer segments drove year-over-year growth.
Quarter in Detail
Revenues by Product Family
Revenues in the DC to DC segment (95% of total revenues) soared 24.2% year over year to $307.4 million. Lighting Control (5% of total revenues) revenues rallied 36.2% to $16.1 million.
Monolithic Power Systems, Inc. Price, Consensus and EPS Surprise
Monolithic Power Systems, Inc. price-consensus-eps-surprise-chart | Monolithic Power Systems, Inc. Quote
Revenues by End Market
Computing & Storage (30.5% of total revenues) revenues increased 30.9% year over year to $98.6 million. The market’s performance was driven by increases in the market share for storage applications
Automotive (16.8%) revenues were $54.4 million, up 90.9% from the prior-year quarter’s figure. The company continued to witness sales growth in infotainment, lighting and Advanced Driver Assistance Systems or ADAS products
Industrial (16.1%) revenues surged 70.2% year over year to $52.2 million, courtesy of higher industrial meters and power sources sales.
Communications (13.8%) revenues declined 18.3% to $44.7 million.
Consumer (22.8%) revenues increased 4.8% from the year-ago quarter’s levels to $73.6 million.
Margins in Detail
Non-GAAP gross margin expanded 230 basis points (bps) from the year-ago quarter’s level to 57.8%. Management had predicted the figure between 57.6% and 58.2%.
Non-GAAP operating expenses amounted to $78.7 million during the reported quarter, up 33.1% year over year. As a percentage of revenues, the figure expanded 150 bps on a year-over-year basis to 24.3%.
Non-GAAP operating income rose 27.7% year over year to $108.4 million. Non-GAAP operating margin (as a percentage of revenues) expanded 80 bps from the year-ago quarter’s level to 33.5%.
Balance Sheet & Cash Flow
As of Sep 30, 2021, cash, cash equivalents and investments were $744.5 million compared with $672.9 million reported as of Jun 30, 2021.
Monolithic Power generated operating cash flow of $117.8 million compared with $96.9 million in the prior quarter. Capital spending totaled $18.6 million in the third quarter.
Guidance
For fourth-quarter 2021, the company projects revenues between $314 million and $326 million. The Zacks Consensus Estimate for revenues is currently pegged at $306.6 million, which indicates growth of 31.6% from the year-ago quarter’s reported figure.
Management anticipates non-GAAP gross margin between 56.3% and 56.9%.
Zacks Rank & Other Stocks to Consider
Currently, Monolithic Power carries a Zacks Rank #2 (Buy).
Some better-ranked stocks in the broader technology sector worth considering are Salesforce (CRM - Free Report) , HP Inc (HPQ - Free Report) and Jabil (JBL - Free Report) . Salesforce and HP Inc sport a Zacks Rank #1 (Strong Buy) while Jabil carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The long-term earnings growth rate for Salesforce, HP Inc and Jabil is currently pegged at 16.8%, 12.7% and 12%, respectively.