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Monolithic Power (MPWR) Q2 Earnings Beat on Higher Revenues
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Monolithic Power Systems, Inc. (MPWR - Free Report) reported strong second-quarter 2024 results, wherein the top and bottom lines beat the respective Zacks Consensus Estimate. Despite declining trends in several verticals, the Kirkland, WA-based company witnessed modest revenue growth year over year, backed by solid momentum in the Enterprise Data vertical.
Net Income
Net income, on a GAAP basis, was $100.4 million or $2.05 per share compared with $99.5 million or $2.04 per share in the prior-year quarter.
Non-GAAP net income improved to $155.1 million or $3.17 per share from $137.5 million or $2.82 per share in the year-ago quarter. The bottom line beat the Zacks Consensus Estimate by 10 cents.
Monolithic Power Systems, Inc. Price and Consensus
Monolithic Power registered revenues of $507.4 million, up from $441.1 million in the prior-year quarter. The top line beat the Zacks Consensus Estimate of $485 million.
Revenues from Storage and Computing declined to $114.9 million from $124.5 million in the prior-year quarter. Lower sales of products for storage solutions affected net sales in this vertical.
Net sales from Enterprise Data witnessed massive growth to $187.2 million from $48 million in the year-ago quarter, backed by higher sales of server solutions.
In the second quarter, the Automotive end market generated $87.2 million in revenues, down from $104.4 million in the prior-year quarter. Lower digital cockpit sales impacted revenues in this segment.
In the June quarter, Industrial revenues were $32.3 million compared with $49.7 million in the year-ago quarter. Soft demand for point-of-sale applications impeded this end market’s revenues.
The Communications vertical contributed $43.6 million to total revenues compared with $49.3 million in the year-ago quarter. Lower infrastructure sales impeded the top line in this end market.
Net sales in the Consumer end market were $42.2 million, down from $65.2 million in the prior-year quarter. Lower gaming revenues impacted the top line.
By product family, revenues in DC-to-DC increased to $501.3 million from $418.2 million in the year-ago quarter. In the June quarter, Lighting Control revenues declined to $6.1 million from $22.9 million in the prior-year quarter.
Other Details
During the reported quarter, non-GAAP gross margin was 55.7%, down from 56.5% in the year-ago quarter. Unfavorable variances and higher direct costs impacted the gross margin.
Non-GAAP operating expenses were $111.7 million compared with $96 million in the prior-year period. Non-GAAP operating income was $171 million, up from $153.1 million.
Cash Flow & Liquidity
During the quarter, the company generated an operating cash flow of $141 million. As of Jun 30, 2024, cash and cash equivalents aggregated $550.5 million, with $96.7 million in other long-term liabilities.
Outlook
For the third quarter of 2024, management expects revenues in the range of $590-$610 million. Non-GAAP gross margin is projected to be between 55.5% and 56.1%. Non-GAAP operating expenses are estimated to be between $118.3 million and $120.3 million. Total stock-based compensation expenses are expected in the range of $51.7 million-$53.7 million.
Cogent Communications Holdings, Inc. (CCOI - Free Report) is scheduled to release second-quarter 2024 earnings on Aug 8. The Zacks Consensus Estimate for earnings is pegged at a loss of $1.02 per share, indicating a decline of 684.6% from the year-ago reported figure.
Akamai Technologies, Inc. (AKAM - Free Report) is slated to release second-quarter 2024 earnings on Aug 8. The Zacks Consensus Estimate for earnings is pegged at $1.54 per share, indicating growth of 3.4% from the year-ago reported figure.
Akamai has a long-term earnings growth expectation of 4.8%. AKAM delivered an average earnings surprise of 5.4% in the last four reported quarters.
CommScope Holding Company, Inc. (COMM - Free Report) is scheduled to release second-quarter 2024 earnings on Aug 8. The Zacks Consensus Estimate for earnings is pegged at $0.06 per share, suggesting a decline of 68.42% from the year-ago reported figure.
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Monolithic Power (MPWR) Q2 Earnings Beat on Higher Revenues
Monolithic Power Systems, Inc. (MPWR - Free Report) reported strong second-quarter 2024 results, wherein the top and bottom lines beat the respective Zacks Consensus Estimate. Despite declining trends in several verticals, the Kirkland, WA-based company witnessed modest revenue growth year over year, backed by solid momentum in the Enterprise Data vertical.
Net Income
Net income, on a GAAP basis, was $100.4 million or $2.05 per share compared with $99.5 million or $2.04 per share in the prior-year quarter.
Non-GAAP net income improved to $155.1 million or $3.17 per share from $137.5 million or $2.82 per share in the year-ago quarter. The bottom line beat the Zacks Consensus Estimate by 10 cents.
Monolithic Power Systems, Inc. Price and Consensus
Monolithic Power Systems, Inc. price-consensus-chart | Monolithic Power Systems, Inc. Quote
Revenues
Monolithic Power registered revenues of $507.4 million, up from $441.1 million in the prior-year quarter. The top line beat the Zacks Consensus Estimate of $485 million.
Revenues from Storage and Computing declined to $114.9 million from $124.5 million in the prior-year quarter. Lower sales of products for storage solutions affected net sales in this vertical.
Net sales from Enterprise Data witnessed massive growth to $187.2 million from $48 million in the year-ago quarter, backed by higher sales of server solutions.
In the second quarter, the Automotive end market generated $87.2 million in revenues, down from $104.4 million in the prior-year quarter. Lower digital cockpit sales impacted revenues in this segment.
In the June quarter, Industrial revenues were $32.3 million compared with $49.7 million in the year-ago quarter. Soft demand for point-of-sale applications impeded this end market’s revenues.
The Communications vertical contributed $43.6 million to total revenues compared with $49.3 million in the year-ago quarter. Lower infrastructure sales impeded the top line in this end market.
Net sales in the Consumer end market were $42.2 million, down from $65.2 million in the prior-year quarter. Lower gaming revenues impacted the top line.
By product family, revenues in DC-to-DC increased to $501.3 million from $418.2 million in the year-ago quarter. In the June quarter, Lighting Control revenues declined to $6.1 million from $22.9 million in the prior-year quarter.
Other Details
During the reported quarter, non-GAAP gross margin was 55.7%, down from 56.5% in the year-ago quarter. Unfavorable variances and higher direct costs impacted the gross margin.
Non-GAAP operating expenses were $111.7 million compared with $96 million in the prior-year period. Non-GAAP operating income was $171 million, up from $153.1 million.
Cash Flow & Liquidity
During the quarter, the company generated an operating cash flow of $141 million. As of Jun 30, 2024, cash and cash equivalents aggregated $550.5 million, with $96.7 million in other long-term liabilities.
Outlook
For the third quarter of 2024, management expects revenues in the range of $590-$610 million. Non-GAAP gross margin is projected to be between 55.5% and 56.1%. Non-GAAP operating expenses are estimated to be between $118.3 million and $120.3 million. Total stock-based compensation expenses are expected in the range of $51.7 million-$53.7 million.
Zacks Rank
MPWR currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here.
Upcoming Releases
Cogent Communications Holdings, Inc. (CCOI - Free Report) is scheduled to release second-quarter 2024 earnings on Aug 8. The Zacks Consensus Estimate for earnings is pegged at a loss of $1.02 per share, indicating a decline of 684.6% from the year-ago reported figure.
Akamai Technologies, Inc. (AKAM - Free Report) is slated to release second-quarter 2024 earnings on Aug 8. The Zacks Consensus Estimate for earnings is pegged at $1.54 per share, indicating growth of 3.4% from the year-ago reported figure.
Akamai has a long-term earnings growth expectation of 4.8%. AKAM delivered an average earnings surprise of 5.4% in the last four reported quarters.
CommScope Holding Company, Inc. (COMM - Free Report) is scheduled to release second-quarter 2024 earnings on Aug 8. The Zacks Consensus Estimate for earnings is pegged at $0.06 per share, suggesting a decline of 68.42% from the year-ago reported figure.