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Monolithic Power (MPWR) Q2 Earnings, Revenues Beat Estimates
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Monolithic Power Systems, Inc. (MPWR - Free Report) reported second-quarter 2022 non-GAAP earnings of $3.25 per share, which beat the Zacks Consensus Estimate by 10.5%. The bottom line improved 79.6% on a year-over-year basis.
Quarter Details
Revenues of $461 million rose 57.2% from the year-ago quarter’s figure and surpassed the Zacks Consensus Estimate by 7.2%. On a sequential basis, the top line grew 22.1%. Strong demand across all six end markets drove the year-over-year growth.
Monolithic Power Systems, Inc. Price, Consensus and EPS Surprise
In the first quarter, the company had reorganized its markets and segregated Computing and Storage into two — Storage and Computing, and Enterprise Data.
Storage and Computing (26.5% of total revenues) revenues increased 111.6% year over year to $122.3 million. The performance was driven by an increase in market share for storage applications.
Enterprise Data (14.1%) revenues were $65.2 million, up 117.9% from the prior-year quarter’s figure.
Automotive (13.2%) revenues were $61 million, up 25.3% from the prior-year quarter’s figure. The company is witnessing sales growth in infotainment, lighting and Advanced Driver Assistance Systems products.
Industrial (12.1%) revenues increased 28.9% year over year to $55.9 million, courtesy of higher industrial meters and power sources sales.
Communications (12.9%) revenues grew 58.3% to $59.2 million.
Consumer (21.1%) revenues moved up 27.9% from the year-ago quarter to $97.3 million.
By product family, revenues in DC to DC (96% of total revenues) surged 58.6% year over year to $442.3 million. Lighting Control (4%) revenues rallied 29.3% to $18.8 million.
Other Details
Non-GAAP gross margin expanded 270 basis points (bps) from the year-ago quarter’s level to 59%. Non-GAAP operating expenses amounted to $92.7 million, up 31.9%. Non-GAAP operating income rose 89% year over year to $179.4 million. As of Jun 30, 2022, the company had $342.9 million in cash and cash equivalents with $60.7 million of other long-term liabilities.
Outlook
MPWR continues to execute its long-term plan for sustainable growth. For the third quarter, it projects revenues between $480 million and $500 million. Non-GAAP gross margin is expected between 58.7% and 59.3%. The company is investing in markets like industrial, server and communications that have strong growth potential over the long term. The company is also engaged in the development of its e-commerce platform. However, it faces significant competition in the analog market. Its highly cyclical business is exposed to rapid product obsolescence and short product life cycles.
United States Cellular Corporation (USM - Free Report) , sporting a Zacks Rank #1, delivered an earnings surprise of 23.1%, on average, in the trailing four quarters. Over the past year, the stock has fallen 10%.
Earnings estimates for the current year have moved down 44.4% since August 2021. United States Cellular’s primary strategy is to provide a range of wireless products and services, and a high-quality network to increase competitiveness.
New Fortress Energy Inc. (NFE - Free Report) , sporting a Zacks Rank #1, is another key pick for investors. It delivered an earnings surprise of 73.9% in the previous quarter and a stellar earnings surprise of 57.6%, on average, in the trailing four quarters. The company operates as an integrated gas-to-power infrastructure company that provides energy and development services to end-users worldwide.
Earnings estimates for the current year have moved up 95.6% since August 2021.
Lumen Technologies, Inc. (LUMN - Free Report) sports a Zacks Rank #1. The Zacks Consensus Estimate for Lumen Technologies current-year earnings has been revised 39.8% upward since August 2021.
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Monolithic Power (MPWR) Q2 Earnings, Revenues Beat Estimates
Monolithic Power Systems, Inc. (MPWR - Free Report) reported second-quarter 2022 non-GAAP earnings of $3.25 per share, which beat the Zacks Consensus Estimate by 10.5%. The bottom line improved 79.6% on a year-over-year basis.
Quarter Details
Revenues of $461 million rose 57.2% from the year-ago quarter’s figure and surpassed the Zacks Consensus Estimate by 7.2%. On a sequential basis, the top line grew 22.1%. Strong demand across all six end markets drove the year-over-year growth.
Monolithic Power Systems, Inc. Price, Consensus and EPS Surprise
Monolithic Power Systems, Inc. price-consensus-eps-surprise-chart | Monolithic Power Systems, Inc. Quote
Segment Performance
In the first quarter, the company had reorganized its markets and segregated Computing and Storage into two — Storage and Computing, and Enterprise Data.
Storage and Computing (26.5% of total revenues) revenues increased 111.6% year over year to $122.3 million. The performance was driven by an increase in market share for storage applications.
Enterprise Data (14.1%) revenues were $65.2 million, up 117.9% from the prior-year quarter’s figure.
Automotive (13.2%) revenues were $61 million, up 25.3% from the prior-year quarter’s figure. The company is witnessing sales growth in infotainment, lighting and Advanced Driver Assistance Systems products.
Industrial (12.1%) revenues increased 28.9% year over year to $55.9 million, courtesy of higher industrial meters and power sources sales.
Communications (12.9%) revenues grew 58.3% to $59.2 million.
Consumer (21.1%) revenues moved up 27.9% from the year-ago quarter to $97.3 million.
By product family, revenues in DC to DC (96% of total revenues) surged 58.6% year over year to $442.3 million. Lighting Control (4%) revenues rallied 29.3% to $18.8 million.
Other Details
Non-GAAP gross margin expanded 270 basis points (bps) from the year-ago quarter’s level to 59%. Non-GAAP operating expenses amounted to $92.7 million, up 31.9%. Non-GAAP operating income rose 89% year over year to $179.4 million.
As of Jun 30, 2022, the company had $342.9 million in cash and cash equivalents with $60.7 million of other long-term liabilities.
Outlook
MPWR continues to execute its long-term plan for sustainable growth. For the third quarter, it projects revenues between $480 million and $500 million. Non-GAAP gross margin is expected between 58.7% and 59.3%. The company is investing in markets like industrial, server and communications that have strong growth potential over the long term. The company is also engaged in the development of its e-commerce platform. However, it faces significant competition in the analog market. Its highly cyclical business is exposed to rapid product obsolescence and short product life cycles.
Zacks Rank & Stocks to Consider
Monolithic Power currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
United States Cellular Corporation (USM - Free Report) , sporting a Zacks Rank #1, delivered an earnings surprise of 23.1%, on average, in the trailing four quarters. Over the past year, the stock has fallen 10%.
Earnings estimates for the current year have moved down 44.4% since August 2021. United States Cellular’s primary strategy is to provide a range of wireless products and services, and a high-quality network to increase competitiveness.
New Fortress Energy Inc. (NFE - Free Report) , sporting a Zacks Rank #1, is another key pick for investors. It delivered an earnings surprise of 73.9% in the previous quarter and a stellar earnings surprise of 57.6%, on average, in the trailing four quarters. The company operates as an integrated gas-to-power infrastructure company that provides energy and development services to end-users worldwide.
Earnings estimates for the current year have moved up 95.6% since August 2021.
Lumen Technologies, Inc. (LUMN - Free Report) sports a Zacks Rank #1. The Zacks Consensus Estimate for Lumen Technologies current-year earnings has been revised 39.8% upward since August 2021.