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MPWR to Report Q2 Earnings: Will Revenue Growth Boost Earnings?

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Key Takeaways

  • MPWR to report Q2 results July 31, with estimates signaling year-over-year gains in revenue and EPS.
  • Growth in auto, computing and storage markets is expected to drive Q2 revenues to $650.41 million.
  • MPWRs supply-chain resilience and local manufacturing strategy may boost second-quarter performance.

Monolithic Power Systems, Inc. (MPWR - Free Report) is set to release second-quarter 2025 results on July 31, after the closing bell. It delivered a four-quarter earnings surprise of 2.20%, on average, beating estimates on each occasion. In the last reported quarter, the company pulled off an earnings surprise of 1%.

This Kirkland, WA-based company is likely to record higher revenues in the to-be-reported quarter, driven by solid traction in several verticals. Management’s effort to expand and diversify its product portfolio is a positive factor.

Factors at Play in MPWR’s Q2 Earnings

Monolithic Power has been benefiting from healthy traction in the Automotive vertical. Growing usage of IoT and AI applications has been driving demand for Monolithic Power’s analog ICs and sensors. Its deep-rooted partnerships with leading auto suppliers are a positive factor. Apart from automotives, Monolithic Power’s strong focus on innovation has been opening up new opportunities in data center, building automation, medical and audio verticals. Strong demand for memory and notebook solutions is expected to have driven growth in the Storage and Computing segment. 

Monolithic Power has been actively investing in cutting-edge technology advancements, venturing into new growth markets and diversifying portfolio offerings. The company is also actively working to enhance resiliency across its global supply chain. Its local manufacturing for local customers approach and augmenting manufacturing footprint worldwide has reduced exposure to tariffs and other geopolitical and macroeconomic volatility. These factors are expected to have a favorable impact on the second-quarter earnings.

Overall Expectations

The Zacks Consensus Estimate for revenues from the Enterprise Data vertical is pegged at $137.45 million, implying a decline from $187.20 million in the year-ago quarter. 

Revenues from the storage and computing vertical are expected to be $185.05 million, indicating growth from the prior-year quarter’s $114.90 million. Net sales from the automotive vertical are pegged at $149.41 million, indicating an increase from $87.20 million reported in the year-ago quarter.

For the June quarter, the Zacks Consensus Estimate for revenues is pegged at $650.41 million, indicating an increase from $507.43 million reported in the year-ago quarter. The consensus estimate for adjusted earnings per share is pegged at $4.12, implying growth from $3.17 reported in the prior-year quarter.

Earnings Whispers for MPWR

Our proven model predicts a likely 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. That is exactly the case here.

MPWR’s Earnings ESP: Earnings ESP, which represents the difference between the Most Accurate Estimate and the Zacks Consensus Estimate, is +0.37%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

MPWR’s Zacks Rank: The company currently carries a Zacks Rank of 2.

Other Stocks to Consider

Arista Networks, Inc. (ANET - Free Report) is set to release quarterly numbers on Aug 05. It has an Earnings ESP of +0.96% and sports a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.

QUALCOMM Incorporated (QCOM - Free Report) is set to release quarterly numbers on July 30. It has an Earnings ESP of +3.85% and carries a Zacks Rank #3.

Euronet Worldwide (EEFT - Free Report) is set to release quarterly numbers on July 31. It has an Earnings ESP of +2.53% and carries a Zacks Rank #2.

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