Monolithic Power Q3 revenue, adj EPS beat estimates
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.)