We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Factors to Note Ahead of Monolithic Power's (MPWR) Q1 Earnings
Read MoreHide Full Article
Monolithic Power Systems, Inc. (MPWR - Free Report) is scheduled to report first-quarter 2021 results on May 4.
For first-quarter 2021, the company projects revenues between $236 million and $248 million. The Zacks Consensus Estimate for fiscal first-quarter revenues is pegged at $242.1 million, which suggests year-over-year growth of 46.1%.
Moreover, the consensus mark for earnings has been steady at $1.33 that indicates an increase of 40% year over year.
Notably, the company has a trailing four-quarter earnings surprise of 3.83%, on average.
Monolithic Power Systems, Inc. Price and EPS Surprise
Monolithic Power reported fourth-quarter 2020 non-GAAP earnings of $1.31 per share, which beat the Zacks Consensus Estimate by 5.65%. Notably, the bottom line increased 26% on a year-over-year basis.
Revenues of $233 million soared 39.8% from the year-ago quarter’s figure and surpassed the Zacks Consensus Estimate by 3.22%. The reported figure was also above the higher end of management’s guidance of $218-$230 million.
Let’s see how things are shaping up prior to this announcement.
Factors to Consider
Monolithic’s first quarter top line performance is expected to have benefited from continued healthy demand across all the end-markets.
A recovering automotive sector along with increasing safety, infotainment and connectivity application products’ sales is likely to drive the top line for automotive end-market segment. The Zacks Consensus Estimate for revenues in Automotive end markets is pegged at $39.25 million that suggests year-over-year growth 68.4%.
Further, Industrial end-market segment is likely to benefit from continued demand for the company’s applications in power sources. The Zacks Consensus Estimate is currently pegged at $37.55 million for the Industrial end-market, which suggest an increase of 48.8% year over year.
Communications end-market revenues are anticipated to have been driven by infrastructure-based production ramp up. The Zacks Consensus Estimate for revenues is currently pegged at $31.98 million for the Communications end-markets, indicating increase 14.7% year over year.
The Zacks Consensus Estimate for Consumer end market revenues is currently pegged at $62 million, which suggests year-over-year growth of 65.8%. The segment is expected to gain from solid uptake of wearables, newly-launched gaming consoles, and home-focused Internet of Things (“IoT”) applications.
Computing & Storage end-market segment’s performance is likely to have been driven by broad-based sales strength, and healthy uptick in data center servers on growing clout of cloud computing and storage applications. The Zacks Consensus Estimate for revenues is currently pegged at $65 million for the Computing and Storage end-markets, which indicates an increase of 25% year over year.
However, supply chain disruptions owing to the COVID-19 situation might have affected the company’s performance in the to be reported quarter. With second wave of COVID-19 infections gripping several parts of the world, many countries undertook re-imposition of shelter-in-place guidelines. This might have negatively impacted production across automotive vertical.
What Our Model Says
Our proven model doesn’t conclusively predict an 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 odds of an earnings beat. But that’s not the case here.
Monolithic Power has an Earnings ESP of 0.00% and a Zacks Rank #3. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks to Consider
Here are some stocks, which you may consider, as our proven model shows that these have the right mix of elements to beat estimates this time around:
Qorvo (QRVO - Free Report) has an Earnings ESP of +2.4% and carries a Zacks Rank of 2, at present.
Microchip (MCHP - Free Report) has an Earnings ESP of +1.44% and currently carries a Zacks Rank of 2.
5 Stocks Set to Double
Each was hand-picked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2020. Each comes from a different sector and has unique qualities and catalysts that could fuel exceptional growth.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
Image: Bigstock
Factors to Note Ahead of Monolithic Power's (MPWR) Q1 Earnings
Monolithic Power Systems, Inc. (MPWR - Free Report) is scheduled to report first-quarter 2021 results on May 4.
For first-quarter 2021, the company projects revenues between $236 million and $248 million. The Zacks Consensus Estimate for fiscal first-quarter revenues is pegged at $242.1 million, which suggests year-over-year growth of 46.1%.
Moreover, the consensus mark for earnings has been steady at $1.33 that indicates an increase of 40% year over year.
Notably, the company has a trailing four-quarter earnings surprise of 3.83%, on average.
Monolithic Power Systems, Inc. Price and EPS Surprise
Monolithic Power Systems, Inc. price-eps-surprise | Monolithic Power Systems, Inc. Quote
Q4 Recap
Monolithic Power reported fourth-quarter 2020 non-GAAP earnings of $1.31 per share, which beat the Zacks Consensus Estimate by 5.65%. Notably, the bottom line increased 26% on a year-over-year basis.
Revenues of $233 million soared 39.8% from the year-ago quarter’s figure and surpassed the Zacks Consensus Estimate by 3.22%. The reported figure was also above the higher end of management’s guidance of $218-$230 million.
Let’s see how things are shaping up prior to this announcement.
Factors to Consider
Monolithic’s first quarter top line performance is expected to have benefited from continued healthy demand across all the end-markets.
A recovering automotive sector along with increasing safety, infotainment and connectivity application products’ sales is likely to drive the top line for automotive end-market segment. The Zacks Consensus Estimate for revenues in Automotive end markets is pegged at $39.25 million that suggests year-over-year growth 68.4%.
Further, Industrial end-market segment is likely to benefit from continued demand for the company’s applications in power sources. The Zacks Consensus Estimate is currently pegged at $37.55 million for the Industrial end-market, which suggest an increase of 48.8% year over year.
Communications end-market revenues are anticipated to have been driven by infrastructure-based production ramp up. The Zacks Consensus Estimate for revenues is currently pegged at $31.98 million for the Communications end-markets, indicating increase 14.7% year over year.
The Zacks Consensus Estimate for Consumer end market revenues is currently pegged at $62 million, which suggests year-over-year growth of 65.8%. The segment is expected to gain from solid uptake of wearables, newly-launched gaming consoles, and home-focused Internet of Things (“IoT”) applications.
Computing & Storage end-market segment’s performance is likely to have been driven by broad-based sales strength, and healthy uptick in data center servers on growing clout of cloud computing and storage applications. The Zacks Consensus Estimate for revenues is currently pegged at $65 million for the Computing and Storage end-markets, which indicates an increase of 25% year over year.
However, supply chain disruptions owing to the COVID-19 situation might have affected the company’s performance in the to be reported quarter. With second wave of COVID-19 infections gripping several parts of the world, many countries undertook re-imposition of shelter-in-place guidelines. This might have negatively impacted production across automotive vertical.
What Our Model Says
Our proven model doesn’t conclusively predict an 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 odds of an earnings beat. But that’s not the case here.
Monolithic Power has an Earnings ESP of 0.00% and a Zacks Rank #3. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks to Consider
Here are some stocks, which you may consider, as our proven model shows that these have the right mix of elements to beat estimates this time around:
Vishay Intertechnology (VSH - Free Report) has an Earnings ESP of +5.22% and sports a Zacks Rank of 2. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Qorvo (QRVO - Free Report) has an Earnings ESP of +2.4% and carries a Zacks Rank of 2, at present.
Microchip (MCHP - Free Report) has an Earnings ESP of +1.44% and currently carries a Zacks Rank of 2.
5 Stocks Set to Double
Each was hand-picked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2020. Each comes from a different sector and has unique qualities and catalysts that could fuel exceptional growth.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
Today, See These 5 Potential Home Runs >>