Monolithic Power Systems (NASDAQ:MPWR) Issues Earnings Results

Monolithic Power Systems (NASDAQ:MPWR) announced its quarterly earnings data on Thursday. The semiconductor company reported $8.19 earnings per share for the quarter, beating the consensus estimate of $7.79 by $0.40, FiscalAI reports. Monolithic Power Systems had a return on equity of 22.31% and a net margin of 24.41%. The firm had revenue of $1.20 billion during the quarter, compared to analysts’ expectations of $1.16 billion. During the same period in the previous year, the firm earned $4.73 EPS. The company’s quarterly revenue was up 63.1% compared to the same quarter last year.

Here are the key takeaways from Monolithic Power Systems’ conference call:

• Record growth: Q3 revenue reached $1.2 billion, up 22% sequentially and 63% year over year, marking MPS’s first quarter above $1 billion. Management said it sees no signs of slowing and described the coming years as an “explosive growth period.”
• Enterprise data remains the primary driver: Management raised its year-over-year growth floor for the enterprise data business from 130% to 150%, supported by existing-customer demand, new ASIC-related wins, higher module content and AI-driven customer expansion. It expects these growth drivers to remain intact into 2027.
• Broader growth opportunities are ramping: Communications growth is benefiting from both optical modules and a rapidly expanding switching business, while automotive design wins in 48V and zonal architectures, robotics, high-speed memory and data converters are expected to contribute increasingly in 2027 and beyond.
• Capacity and new technologies are being built ahead of demand: Annual revenue-supporting capacity has surpassed $6 billion, with $8 billion targeted by the second half of 2027 and $10 billion thereafter. MPS is sampling internally developed 800V GaN solutions, but meaningful revenue is not expected until late 2027 or more likely 2028 as reliability is validated.
• Operating leverage remains favorable: Management expects gross-margin expansion to continue gradually within its 55%–60% target range, while rapid revenue growth is causing operating expenses to run below the company’s historical model. MPS also repurchased more than $450 million of stock in Q3.

Monolithic Power Systems Stock Down 1.0%

NASDAQ:MPWR traded down $12.41 on Thursday, hitting $1,198.81. The stock had a trading volume of 788,697 shares, compared to its average volume of 733,050. Monolithic Power Systems has a 52 week low of $833.18 and a 52 week high of $1,714.09. The business’s fifty day moving average is $1,276.68 and its 200 day moving average is $1,309.09. The company has a market cap of $58.91 billion, a PE ratio of 73.50 and a beta of 1.68.

Monolithic Power Systems Dividend Announcement

The business also recently announced a quarterly dividend, which was paid on Thursday, October 15th. Investors of record on Wednesday, September 30th were paid a dividend of $2.00 per share. The ex-dividend date of this dividend was Wednesday, September 30th. This represents a $8.00 annualized dividend and a yield of 0.7%. Monolithic Power Systems’s dividend payout ratio is currently 49.05%.

Insiders Place Their Bets

In other news, EVP Maurice Sciammas sold 30 shares of the stock in a transaction that occurred on Monday, August 3rd. The stock was sold at an average price of $1,343.94, for a total value of $40,318.20. Following the completion of the sale, the executive vice president directly owned 1,119 shares of the company’s stock, valued at $1,503,868.86. This represents a 2.61% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Kuo Wei Chang sold 50 shares of the stock in a transaction on Monday, August 24th. The shares were sold at an average price of $1,281.57, for a total value of $64,078.50. Following the completion of the sale, the director directly owned 515 shares of the company’s stock, valued at $660,008.55. The trade was a 8.85% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold a total of 130 shares of company stock valued at $175,397 in the last 90 days. 3.60% of the stock is currently owned by company insiders.

Wall Street Analyst Weigh In

MPWR has been the topic of several research analyst reports. Needham & Company LLC raised their price objective on Monolithic Power Systems from $1,750.00 to $2,000.00 and gave the company a “buy” rating in a research note on Friday, July 31st. Oppenheimer lowered their target price on Monolithic Power Systems from $1,700.00 to $1,500.00 and set an “outperform” rating for the company in a research note on Friday, October 23rd. Truist Financial boosted their target price on Monolithic Power Systems from $1,805.00 to $1,889.00 and gave the stock a “buy” rating in a research note on Friday, July 31st. Raymond James Financial restated an “outperform” rating on shares of Monolithic Power Systems in a research note on Wednesday, August 12th. Finally, Arete Research started coverage on shares of Monolithic Power Systems in a research note on Thursday, August 20th. They issued a “buy” rating and a $2,013.00 price target on the stock. Thirteen research analysts have rated the stock with a Buy rating and three have issued a Hold rating to the stock. Based on data from MarketBeat, Monolithic Power Systems presently has an average rating of “Moderate Buy” and an average price target of $1,692.64.

Monolithic Power Systems Company Profile

Monolithic Power Systems, Inc (NASDAQ: MPWR) is a semiconductor company that designs, develops and markets high-performance power-management solutions. Its products help regulate, convert, distribute and control electrical power in electronic systems, supporting applications that require efficient and reliable power delivery.

The company’s portfolio includes integrated circuits, power modules, battery-management products, motor drivers, LED drivers and related analog and mixed-signal semiconductor solutions.