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Monolithic Power (MPWR) Q1 Earnings & Revenues Top Estimates

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Monolithic Power Systems, Inc. (MPWR - Free Report) reported first-quarter 2022 non-GAAP earnings of $2.45 per share, which beat the Zacks Consensus Estimate by 8.4%. The bottom line improved 67.8% on a year-over-year basis.

Revenues of $377.7 million rose 48.4% from the year-ago quarter’s figure and surpassed the Zacks Consensus Estimate by 4.9%. On a sequential basis, the top line grew 12.2%. Strong demand across all six end markets drove the year-over-year growth.

In the quarter, the company reorganized its markets and segregated Computing and Storage into two — Storage and Computing, and Enterprise Data.

Storage and Computing (25.6% of total revenues) revenues increased 88.3% year over year to $96.6 million. The performance was driven by an increase in market share for storage applications.

Enterprise Data (11.3%) revenues were $42.5 million, up 162.3% from the prior-year quarter’s figure.

Automotive (14.4%) revenues were $54.5 million, up 21.4% from the prior-year quarter’s figure. The company is witnessing sales growth in infotainment, lighting and Advanced Driver Assistance Systems products.

Industrial (12.9%) revenues increased 21.9% year over year to $48.5 million, courtesy of higher industrial meters and power sources sales.

Communications (14.6%) revenues grew 54% to $55.6 million.

Consumer (21.2%) revenues moved up 20.8% from the year-ago quarter to $80 million.

By product family, revenues in DC to DC (95% of total revenues) surged 48.6% year over year to $358.8 million. Lighting Control (5%) revenues rallied 45.4% to $18.9 million.

Other Details

Non-GAAP gross margin expanded 250 basis points (bps) from the year-ago quarter’s level to 58.3%. Non-GAAP operating expenses amounted to $86.6 million, up 30.8%. Non-GAAP operating income rose 76.3% year over year to $133.6 million.

As of Mar 31, 2022, the company had $260.6 million in cash and cash equivalents with $65.6 million of other long-term liabilities.

Outlook

The company continues to execute on its long-term plan for sustainable growth. For the second quarter, it projects revenues between $420 million and $440 million. Non-GAAP gross margin is expected between 58.7% and 59.3%.

Zacks Rank & Stocks to Consider

Monolithic Power currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Gogo Inc. (GOGO - Free Report) is a better-ranked stock in the broader Zacks Computer and Technology sector, sporting a Zacks Rank #1. The Zacks Consensus Estimate for its current-year earnings has been revised upward by 25% over the past 60 days.

Gogo delivered a trailing four-quarter earnings surprise of 65%, on average. It has rallied 75.4% in the past year.

Nokia (NOK - Free Report) , carrying a Zacks Rank #2 (Buy), is another solid pick for investors. The consensus estimate for current-year earnings has been revised upward by 5% over the past 60 days.

Nokia pulled off a trailing four-quarter earnings surprise of 33.8%, on average. It has returned 9.1% in the past year.

Sierra Wireless, Inc. (SWIR - Free Report) carries a Zacks Rank #2. The consensus mark for current-year earnings has been revised upward by 237.5% over the past 60 days.

Sierra Wireless pulled off a trailing four-quarter earnings surprise of 58%, on average. The stock has inched up 5.2% in the past year.