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Can Top-Line Growth Buoy Monolithic Power (MPWR) Q2 Earnings?
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Monolithic Power Systems, Inc. (MPWR - Free Report) is scheduled to report second-quarter 2022 results on Aug 1, after the closing bell. In the last reported quarter, the company delivered an earnings surprise of 8.4%. It pulled off a trailing four-quarter earnings surprise of 8%, on average.
The Kirkland, WA-based company is expected to have recorded year-over-year higher revenues, driven by solid demand across the automotive, industrial, computing and storage and communications markets. It is a leading provider of high-performance, semiconductor-based power electronics solutions.
Factors at Play
During the second quarter, Monolithic Power introduced the automotive MPSafe portfolio of safety-oriented automotive-qualified products that help customers meet various Automotive Safety Integrity Level, or ASIL, requirements. This comprehensive suite of MPSafe products will offer incredible power, sophisticated oversight and precision system control. These capabilities are likely to have translated into incremental revenues in the quarter.
Apart from automotive, continued investments in markets like industrial, server and communications will likely be reflected in the upcoming results. The ongoing adoption of cloud computing is driving demand for servers, which bodes well for the company’s power management solutions. Higher dollar content in new servers based on Purley might have boosted top-line growth in the quarter. Management expects cloud computing to be a notable growth driver, particularly due to the increasing demand for solid state drives and servers.
For the June quarter, the Zacks Consensus Estimate for revenues is pegged at $430 million, which indicates growth of 46.8% from the year-ago quarter’s reported figure. The consensus estimate for adjusted earnings per share is pegged at $2.21, suggesting an increase of 88.9%.
Earnings Whispers
Our proven model does not 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 chances of an earnings beat. This is not the case here.
Earnings ESP: Earnings ESP, which represents the difference between the Most Accurate Estimate and the Zacks Consensus Estimate, is 0.00%, with both pegged at $2.94. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Monolithic Power Systems, Inc. Price and EPS Surprise
Zacks Rank: Monolithic Power currently has a Zacks Rank #4 (Sell).
Stocks to Consider
Here are some companies you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat this season:
The Earnings ESP for Qorvo Inc. (QRVO - Free Report) is +0.41% and it carries a Zacks Rank of 3. The company is set to report quarterly numbers on Aug 3.
The Earnings ESP for Advanced Micro Devices, Inc. (AMD - Free Report) is +1.66% and it carries a Zacks Rank of 3. The company is scheduled to report quarterly numbers on Aug 2.
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Can Top-Line Growth Buoy Monolithic Power (MPWR) Q2 Earnings?
Monolithic Power Systems, Inc. (MPWR - Free Report) is scheduled to report second-quarter 2022 results on Aug 1, after the closing bell. In the last reported quarter, the company delivered an earnings surprise of 8.4%. It pulled off a trailing four-quarter earnings surprise of 8%, on average.
The Kirkland, WA-based company is expected to have recorded year-over-year higher revenues, driven by solid demand across the automotive, industrial, computing and storage and communications markets. It is a leading provider of high-performance, semiconductor-based power electronics solutions.
Factors at Play
During the second quarter, Monolithic Power introduced the automotive MPSafe portfolio of safety-oriented automotive-qualified products that help customers meet various Automotive Safety Integrity Level, or ASIL, requirements. This comprehensive suite of MPSafe products will offer incredible power, sophisticated oversight and precision system control. These capabilities are likely to have translated into incremental revenues in the quarter.
Apart from automotive, continued investments in markets like industrial, server and communications will likely be reflected in the upcoming results. The ongoing adoption of cloud computing is driving demand for servers, which bodes well for the company’s power management solutions. Higher dollar content in new servers based on Purley might have boosted top-line growth in the quarter. Management expects cloud computing to be a notable growth driver, particularly due to the increasing demand for solid state drives and servers.
For the June quarter, the Zacks Consensus Estimate for revenues is pegged at $430 million, which indicates growth of 46.8% from the year-ago quarter’s reported figure. The consensus estimate for adjusted earnings per share is pegged at $2.21, suggesting an increase of 88.9%.
Earnings Whispers
Our proven model does not 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 chances of an earnings beat. This is not the case here.
Earnings ESP: Earnings ESP, which represents the difference between the Most Accurate Estimate and the Zacks Consensus Estimate, is 0.00%, with both pegged at $2.94. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Monolithic Power Systems, Inc. Price and EPS Surprise
Monolithic Power Systems, Inc. price-eps-surprise | Monolithic Power Systems, Inc. Quote
Zacks Rank: Monolithic Power currently has a Zacks Rank #4 (Sell).
Stocks to Consider
Here are some companies you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat this season:
Keysight Technologies, Inc. (KEYS - Free Report) is set to release quarterly numbers on Aug 17. It has an Earnings ESP of +1.23% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Earnings ESP for Qorvo Inc. (QRVO - Free Report) is +0.41% and it carries a Zacks Rank of 3. The company is set to report quarterly numbers on Aug 3.
The Earnings ESP for Advanced Micro Devices, Inc. (AMD - Free Report) is +1.66% and it carries a Zacks Rank of 3. The company is scheduled to report quarterly numbers on Aug 2.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.