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Monolithic Power Q3 revenue, adj EPS beat estimates

By Reuters News


Overview

  • US chipmaker's Q3 revenue rose 63% yr/yr, beating analyst expectations

  • Q3 adjusted EPS beat analyst expectations

  • Company repurchased $453 mln in stock, adds $500 mln to buyback authorization


Outlook

  • Company forecasts Q4 revenue between $1.315 bln and $1.385 bln

  • Company expects Q4 GAAP gross margin of 55.2% to 55.8% and non-GAAP gross margin of 55.5% to 56.1%

  • Company anticipates strong demand in enterprise data to continue into 2027


Result Drivers

  • ENTERPRISE DATA DEMAND - Co said strong demand from existing customers and expanded customer base in enterprise data drove Q3 revenue growth

  • COMMUNICATIONS SALES - Higher sales of power solutions for optical modules and switches boosted Q3 communications revenue

  • AUTOMOTIVE SOLUTIONS - Increased sales of ADAS power solutions contributed to Q3 automotive revenue growth


Company press release:


Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q3 Revenue

Beat

$1.20 bln

$1.15 bln (13 Analysts)

Q3 Adjusted EPS

Beat

$8.19

$7.75 (12 Analysts)


Analyst Coverage

  • The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 14 "strong buy" or "buy", 3 "hold" and no "sell" or "strong sell"

  • The average consensus recommendation for the semiconductors peer group is "buy"

  • Wall Street's median 12-month price target for Monolithic Power Systems Inc is $1,800.00, about 48.6% above its October 28 closing price of $1,211.22

  • The stock recently traded at 36 times the next 12-month earnings vs. a P/E of 51 three months ago


Reuters Recommended Reads

  • Oct 28 - Chip gear maker KLA's Q1 revenue beats analyst estimates on AI demand

  • Oct 27 - Netherlands' ASM International Q3 revenue jumps on strong growth in memory sales

  • Oct 29 - Taiwan's ASE Technology Q3 revenue jumps 45%, net income more than doubles


For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.


(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)

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