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Valued at a market cap of $28.7 billion, Monolithic Power Systems, Inc. (MPWR) designs, develops, markets, and sells semiconductor-based power electronics solutions for the storage and computing, automotive, enterprise data, consumer, communications, and industrial markets. The Kirkland, Washington-based company is expected to release its fiscal Q4 earnings results on Wednesday, Feb. 5.
Ahead of this event, analysts expect the semiconductor company to report a profit of $3.13 per share, up 53.4% from $2.04 per share in the year-ago quarter. The company has surpassed Wall Street's earnings estimates in one of the last four quarters while missing on three other occasions. Its core FFO of $2.21 per share in the previous quarter outpaced the consensus estimates by 1.4%.
For fiscal 2024, analysts expect MPWR to report an EPS of $10.46, up 19.1% from $8.78 in fiscal 2023.
Shares of MPWR have gained 1.9% over the past 52 weeks, massively underperforming both the S&P 500 Index's ($SPX) 22.1% rise and the Technology Select Sector SPDR Fund’s (XLK) 18.5% return over the same time frame.
Shares of MPWR crashed 17.5% following its Q3 earnings release on Oct. 30, despite delivering better-than-expected Q3 revenues of $620.1 million and adjusted earnings of $4.06 per share. Moreover, the top-line figure improved by a notable 30.6% from the year-ago quarter, while the bottom line climbed 31.8% year-over-year. However, the company’s fourth-quarter outlook disappointed the investors and overshadowed the positives. Noting the delay in Nvidia Blackwell chips, Monolithic expects the fourth-quarter revenues to be just $610 million at the midpoint, implying a quarter-to-quarter drop. This might have raised investor concerns regarding MPWR's near-term growth and led to its downward price movement.
Wall Street analysts are moderately optimistic about Monolithic’s stock, with a "Moderate Buy" rating overall. Among 13 analysts covering the stock, eight recommend "Strong Buy," two suggest “Moderate Buy,” and three indicate “Hold.”
The average price target for MPWR is $796.09, which indicates a massive 35% potential upside from the current levels.
