Monolithic Power Systems (NASDAQ:MPWR) Posts Earnings Results, Beats Estimates By $0.40 EPS

Monolithic Power Systems (NASDAQ:MPWR) announced its quarterly earnings data on Thursday. The semiconductor company reported $8.19 EPS for the quarter, beating the consensus estimate of $7.79 by $0.40, FiscalAI reports. Monolithic Power Systems had a net margin of 24.41% and a return on equity of 22.31%. The firm had revenue of $1.20 billion during the quarter, compared to analysts’ expectations of $1.16 billion.

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 Performance

NASDAQ:MPWR traded down $12.41 during mid-day trading on Thursday, hitting $1,198.81. 788,697 shares of the company’s stock traded hands, compared to its average volume of 733,050. The firm’s 50 day simple moving average is $1,278.70 and its 200 day simple moving average is $1,307.89. Monolithic Power Systems has a 1 year low of $833.18 and a 1 year high of $1,714.09. 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 Announces Dividend

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

Wall Street Analyst Weigh In

A number of research analysts have issued reports on the stock. Zacks Research cut shares of Monolithic Power Systems from a “strong-buy” rating to a “hold” rating in a report on Friday, October 2nd. Needham & Company LLC boosted their price target on Monolithic Power Systems from $1,750.00 to $2,000.00 and gave the stock a “buy” rating in a research note on Friday, July 31st. Weiss Ratings upgraded Monolithic Power Systems from a “hold (c)” rating to a “hold (c+)” rating in a report on Thursday, October 8th. TD Cowen dropped their price objective on Monolithic Power Systems from $1,850.00 to $1,700.00 and set a “buy” rating for the company in a research note on Monday, October 19th. Finally, Truist Financial lifted their price objective on Monolithic Power Systems from $1,805.00 to $1,889.00 and gave the stock a “buy” rating in a report on Friday, July 31st. Thirteen research analysts have rated the stock with a Buy rating and three have issued a Hold rating to the company’s stock. According to MarketBeat.com, the stock has an average rating of “Moderate Buy” and an average price target of $1,692.64.

Insider Activity

In other Monolithic Power Systems news, Director Kuo Wei Chang sold 50 shares of the company’s stock in a transaction dated 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 sale, the director owned 515 shares of the company’s stock, valued at $660,008.55. This represents a 8.85% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Also, EVP Maurice Sciammas sold 30 shares of the stock in a transaction that occurred on Monday, August 3rd. The shares were sold at an average price of $1,343.94, for a total transaction of $40,318.20. Following the completion of the sale, the executive vice president owned 1,119 shares in the company, valued at $1,503,868.86. This represents a 2.61% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 130 shares of company stock worth $175,397 in the last ninety days. Insiders own 3.60% of the company’s stock.

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.