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Can Higher Revenues Aid Monolithic Power (MPWR) Q3 Earnings?
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Monolithic Power Systems, Inc. (MPWR - Free Report) is scheduled to report third-quarter 2022 results on Oct 27, 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 third quarter, Monolithic Power continued to invest in markets like industrial, server and communications that have strong growth potential over the long term. The ongoing adoption of cloud computing is driving demand for servers, which bodes well for the company’s power management solutions. This is likely to have translated into incremental revenues in the quarter.
Management has stated that the company is winning increasing dollar content in the automotive market. Moreover, its deep-rooted partnerships with leading auto suppliers will likely boost the top line. Monolithic has a strong growth opportunity due to its robust product portfolio that targets In-Car connectivity and infotainment, advanced driver assistance system and rapid adoption of LED lighting in cars and vehicles. Apart from automotive, continued investments in markets like industrial, server and communications will likely be reflected in the upcoming results.
For the September quarter, the Zacks Consensus Estimate for revenues is pegged at $490 million, which indicates growth from the year-ago quarter’s reported figure of $324 million. The consensus estimate for adjusted earnings per share is pegged at $3.49, suggesting an increase from $2.06 reported in the prior year.
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 $3.49. 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 #3.
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 Cogent Communications Holdings, Inc. (CCOI - Free Report) is +34.78% and it carries a Zacks Rank of 3. The company is set to report quarterly numbers on Nov 3.
The Earnings ESP for Apple Inc. (AAPL - Free Report) is +0.89% and it carries a Zacks Rank of 3. The company is scheduled to report quarterly numbers on Oct 27.
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Can Higher Revenues Aid Monolithic Power (MPWR) Q3 Earnings?
Monolithic Power Systems, Inc. (MPWR - Free Report) is scheduled to report third-quarter 2022 results on Oct 27, 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 third quarter, Monolithic Power continued to invest in markets like industrial, server and communications that have strong growth potential over the long term. The ongoing adoption of cloud computing is driving demand for servers, which bodes well for the company’s power management solutions. This is likely to have translated into incremental revenues in the quarter.
Management has stated that the company is winning increasing dollar content in the automotive market. Moreover, its deep-rooted partnerships with leading auto suppliers will likely boost the top line. Monolithic has a strong growth opportunity due to its robust product portfolio that targets In-Car connectivity and infotainment, advanced driver assistance system and rapid adoption of LED lighting in cars and vehicles. Apart from automotive, continued investments in markets like industrial, server and communications will likely be reflected in the upcoming results.
For the September quarter, the Zacks Consensus Estimate for revenues is pegged at $490 million, which indicates growth from the year-ago quarter’s reported figure of $324 million. The consensus estimate for adjusted earnings per share is pegged at $3.49, suggesting an increase from $2.06 reported in the prior year.
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 $3.49. 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 #3.
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:
Arista Networks, Inc. (ANET - Free Report) is set to release quarterly numbers on Oct 31. It has an Earnings ESP of +1.27% and a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Earnings ESP for Cogent Communications Holdings, Inc. (CCOI - Free Report) is +34.78% and it carries a Zacks Rank of 3. The company is set to report quarterly numbers on Nov 3.
The Earnings ESP for Apple Inc. (AAPL - Free Report) is +0.89% and it carries a Zacks Rank of 3. The company is scheduled to report quarterly numbers on Oct 27.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.