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Will Higher Revenues Boost Monolithic Power's (MPWR) Q2 Earnings?
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Monolithic Power Systems, Inc. (MPWR - Free Report) is set to report its second-quarter 2024 results on Aug 1, after the closing bell. In the last reported quarter, the company delivered an earnings surprise of 5.64%. It pulled off a trailing four-quarter earnings surprise of 1.85%, on average.
The Kirkland, WA-based company is likely to report higher revenues year over year in the second quarter, driven by solid traction in the Enterprise Data vertical. However, weakness in the Consumer and Industrial segments is a concern.
Factors at Play
Monolithic Power is benefiting from strong customer engagement in the Enterprise Data segment. To match the growing demand of high-power AI computation in data centers, the company is steadily advancing its power management portfolio by incorporating cutting edge technologies, such as liquid cooling features and vertical power systems.
Monolithic Power is also at the forefront of the design cycle for next generation GPU products. Design wins in 5G market signals recovery in the Communication segment. Along with expanding its product offerings, the company is also diversifying its manufacturing footprint to enhance resilience of its supply chain.
Product innovation, integration of leading-edge technologies, strong focus on quality and operational efficiency is driving design wins across several verticals. These factors are expected to have boosted the top line in the second quarter.
The consensus estimate for revenues from the Enterprise Data vertical is pegged at $169.20 million, implying solid growth from $47.98 million in the year-ago quarter. The Zacks Consensus Estimate for net sales in the Communication segment is pegged at $47.36 million, suggesting a decline from $49.29 million in the year-ago quarter.
Contribution from the consumer vertical is expected to be $38.56 million, implying a decline from $65.19 million reported in the year-ago quarter. The Zacks Consensus Estimate for net sales from the Industrial vertical is pegged at $31.06 million, suggesting a reduction from $49.73 million reported in the prior-year quarter.
Revenues from the storage and computing vertical are expected to be $109.45 million, indicating a decrease from the prior-year quarter’s tally of $124.54 million. Net sales from the automotive vertical are pegged at $92.54 million, indicating a decline from $104.39 million reported in the year-ago quarter.
For the June quarter, the Zacks Consensus Estimate for revenues is pegged at $489.91 million, suggesting an increase from $441.13 million reported in the year-ago quarter. The consensus estimate for adjusted earnings per share is pegged at $3.07, implying growth from $2.82 reported in the prior-year quarter.
Earnings Whispers
Our proven model does not 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 chances of an earnings beat. That is not the case here.
Earnings ESP: Earnings ESP, which represents the difference between the Most Accurate Estimate and the Zacks Consensus Estimate, is 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Monolithic Power Systems, Inc. Price and EPS Surprise
The Earnings ESP for Advanced Micro Devices (AMD - Free Report) is +2.21%, and it has a Zacks Rank of 3 at present. The company is scheduled to report quarterly numbers on Jul 30.
The Earnings ESP for Arista Networks, Inc. (ANET - Free Report) is +1.72%, and it sports a Zacks Rank of 1 at present. The company is scheduled to report quarterly numbers on Jul 30.
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Will Higher Revenues Boost Monolithic Power's (MPWR) Q2 Earnings?
Monolithic Power Systems, Inc. (MPWR - Free Report) is set to report its second-quarter 2024 results on Aug 1, after the closing bell. In the last reported quarter, the company delivered an earnings surprise of 5.64%. It pulled off a trailing four-quarter earnings surprise of 1.85%, on average.
The Kirkland, WA-based company is likely to report higher revenues year over year in the second quarter, driven by solid traction in the Enterprise Data vertical. However, weakness in the Consumer and Industrial segments is a concern.
Factors at Play
Monolithic Power is benefiting from strong customer engagement in the Enterprise Data segment. To match the growing demand of high-power AI computation in data centers, the company is steadily advancing its power management portfolio by incorporating cutting edge technologies, such as liquid cooling features and vertical power systems.
Monolithic Power is also at the forefront of the design cycle for next generation GPU products. Design wins in 5G market signals recovery in the Communication segment. Along with expanding its product offerings, the company is also diversifying its manufacturing footprint to enhance resilience of its supply chain.
Product innovation, integration of leading-edge technologies, strong focus on quality and operational efficiency is driving design wins across several verticals. These factors are expected to have boosted the top line in the second quarter.
The consensus estimate for revenues from the Enterprise Data vertical is pegged at $169.20 million, implying solid growth from $47.98 million in the year-ago quarter. The Zacks Consensus Estimate for net sales in the Communication segment is pegged at $47.36 million, suggesting a decline from $49.29 million in the year-ago quarter.
Contribution from the consumer vertical is expected to be $38.56 million, implying a decline from $65.19 million reported in the year-ago quarter. The Zacks Consensus Estimate for net sales from the Industrial vertical is pegged at $31.06 million, suggesting a reduction from $49.73 million reported in the prior-year quarter.
Revenues from the storage and computing vertical are expected to be $109.45 million, indicating a decrease from the prior-year quarter’s tally of $124.54 million. Net sales from the automotive vertical are pegged at $92.54 million, indicating a decline from $104.39 million reported in the year-ago quarter.
For the June quarter, the Zacks Consensus Estimate for revenues is pegged at $489.91 million, suggesting an increase from $441.13 million reported in the year-ago quarter. The consensus estimate for adjusted earnings per share is pegged at $3.07, implying growth from $2.82 reported in the prior-year quarter.
Earnings Whispers
Our proven model does not 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 chances of an earnings beat. That is not the case here.
Earnings ESP: Earnings ESP, which represents the difference between the Most Accurate Estimate and the Zacks Consensus Estimate, is 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Monolithic Power Systems, Inc. Price and EPS Surprise
Monolithic Power Systems, Inc. price-eps-surprise | Monolithic Power Systems, Inc. Quote
Zacks Rank: MPWR currently carries a Zacks Rank #3 (Hold).
Stocks to Consider
Here are some companies you may want to consider, as our model shows that these have the right combination of elements to post a beat this season:
Pinterest (PINS - Free Report) has an Earnings ESP of +7.14% and a Zacks Rank #3 at present. It is set to release quarterly numbers on Jul 30. It You can see the complete list of today’s Zacks #1 Rank stocks here.
The Earnings ESP for Advanced Micro Devices (AMD - Free Report) is +2.21%, and it has a Zacks Rank of 3 at present. The company is scheduled to report quarterly numbers on Jul 30.
The Earnings ESP for Arista Networks, Inc. (ANET - Free Report) is +1.72%, and it sports a Zacks Rank of 1 at present. The company is scheduled to report quarterly numbers on Jul 30.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.