Monolithic Power Systems (NASDAQ:MPWR) Announces Quarterly Earnings Results

Key Points

• Quarterly results exceeded expectations: Monolithic Power Systems reported $8.19 in EPS versus the $7.79 consensus estimate, while revenue reached $1.20 billion compared with forecasts of $1.16 billion.
• Growth accelerated sharply: Q3 revenue rose 22% sequentially and 63% year over year, surpassing $1 billion for the first time. Enterprise data demand, AI-related opportunities, communications, automotive and robotics are expected to support continued growth.
• Analysts remain broadly positive: The stock carries a “Moderate Buy” consensus rating from analysts, with an average price target of $1,692.64, despite shares trading lower following the earnings release.

Monolithic Power Systems (NASDAQ:MPWR - Get Free Report) posted its quarterly earnings data on Thursday. The semiconductor company reported $8.19 EPS for the quarter, beating analysts' consensus estimates of $7.79 by $0.40, FiscalAI reports. Monolithic Power Systems had a net margin of 24.41% and a return on equity of 22.31%. The company had revenue of $1.20 billion for the quarter, compared to analyst estimates of $1.16 billion.

Here are the key takeaways from Monolithic Power Systems' conference call:

• Record growth: Q3 revenue reached $1.2 billion, up 22% sequentially and 63% year over year, marking MPS’s first quarter above $1 billion. Management said it sees no signs of slowing and described the coming years as an “explosive growth period.”
• Enterprise data remains the primary driver: Management raised its year-over-year growth floor for the enterprise data business from 130% to 150%, supported by existing-customer demand, new ASIC-related wins, higher module content and AI-driven customer expansion. It expects these growth drivers to remain intact into 2027.
• Broader growth opportunities are ramping: Communications growth is benefiting from both optical modules and a rapidly expanding switching business, while automotive design wins in 48V and zonal architectures, robotics, high-speed memory and data converters are expected to contribute increasingly in 2027 and beyond.
• Capacity and new technologies are being built ahead of demand: Annual revenue-supporting capacity has surpassed $6 billion, with $8 billion targeted by the second half of 2027 and $10 billion thereafter. MPS is sampling internally developed 800V GaN solutions, but meaningful revenue is not expected until late 2027 or more likely 2028 as reliability is validated.
• Operating leverage remains favorable: Management expects gross-margin expansion to continue gradually within its 55%–60% target range, while rapid revenue growth is causing operating expenses to run below the company’s historical model. MPS also repurchased more than $450 million of stock in Q3.

Monolithic Power Systems Price Performance

Shares of MPWR stock traded down $12.41 during mid-day trading on Thursday, hitting $1,198.81. The stock had a trading volume of 788,697 shares, compared to its average volume of 733,050. The firm has a market cap of $58.91 billion, a PE ratio of 73.50 and a beta of 1.68. The company's 50-day simple moving average is $1,278.70 and its 200-day simple moving average is $1,307.89. Monolithic Power Systems has a fifty-two week low of $833.18 and a fifty-two week high of $1,714.09.

Monolithic Power Systems Announces Dividend

The company also recently announced a quarterly dividend, which was paid on Thursday, October 15th. Stockholders of record on Wednesday, September 30th were paid a $2.00 dividend. This represents a $8.00 annualized dividend and a dividend yield of 0.7%. The ex-dividend date was Wednesday, September 30th. Monolithic Power Systems's dividend payout ratio (DPR) is 49.05%.

Insider Transactions at Monolithic Power Systems

In related news, EVP Maurice Sciammas sold 30 shares of the stock in a transaction dated Monday, August 3rd. The shares were sold at an average price of $1,343.94, for a total transaction of $40,318.20. Following the completion of the transaction, the executive vice president directly owned 1,119 shares of the company's stock, valued at $1,503,868.86. This represents a 2.61% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Kuo Wei Chang sold 50 shares of the firm's stock in a transaction dated Monday, August 24th. The shares were sold at an average price of $1,281.57, for a total transaction of $64,078.50. Following the completion of the sale, the director owned 515 shares of the company's stock, valued at approximately $660,008.55. The trade was a 8.85% decrease in their position. The disclosure for this sale is available in the SEC filing. Over the last quarter, insiders have sold 130 shares of company stock worth $175,397. Company insiders own 3.60% of the company's stock.

Analyst Ratings Changes

Several brokerages have recently weighed in on MPWR. Weiss Ratings upgraded shares of Monolithic Power Systems from a "hold (c)" rating to a "hold (c+)" rating in a research note on Thursday, October 8th. Wells Fargo & Company dropped their price target on Monolithic Power Systems from $1,800.00 to $1,550.00 and set an "overweight" rating on the stock in a research report on Tuesday, October 20th. Needham & Company LLC upped their price objective on Monolithic Power Systems from $1,750.00 to $2,000.00 and gave the company a "buy" rating in a research note on Friday, July 31st. Raymond James Financial reaffirmed an "outperform" rating on shares of Monolithic Power Systems in a research report on Wednesday, August 12th. Finally, Rosenblatt Securities reiterated a "neutral" rating and issued a $1,575.00 target price on shares of Monolithic Power Systems in a research note on Friday, July 31st. Thirteen analysts have rated the stock with a Buy rating and three have issued a Hold rating to the company's stock. According to data from MarketBeat, the company currently has a consensus rating of "Moderate Buy" and a consensus price target of $1,692.64.

Monolithic Power Systems Company Profile

Monolithic Power Systems, Inc NASDAQ: MPWR is a semiconductor company that designs, develops and markets high-performance power-management solutions. Its products help regulate, convert, distribute and control electrical power in electronic systems, supporting applications that require efficient and reliable power delivery.

The company's portfolio includes integrated circuits, power modules, battery-management products, motor drivers, LED drivers and related analog and mixed-signal semiconductor solutions.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.