Monolithic Power Systems (NASDAQ:MPWR) Releases Earnings Results, Beats Expectations By $0.20 EPS

Monolithic Power Systems (NASDAQ:MPWR - Get Free Report) posted its quarterly earnings data on Thursday. The semiconductor company reported $5.10 EPS for the quarter, topping the consensus estimate of $4.90 by $0.20, FiscalAI reports. Monolithic Power Systems had a net margin of 22.84% and a return on equity of 19.58%. The firm had revenue of $804.19 million during the quarter, compared to analyst estimates of $781.93 million. During the same quarter in the previous year, the business posted $4.04 EPS. Monolithic Power Systems's revenue was up 26.1% on a year-over-year basis.

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

• MPS reported record Q1 revenue of $804 million, up 7% sequentially and 26% year‑over‑year, led by a 33% sequential jump in communications (optical modules and switches).
• The company raised its enterprise data growth floor to about 85% year‑over‑year, citing extended ordering/backlog and sampling of high‑speed DDR5 interface products at major customers, improving near‑term visibility.
• MPS is expanding manufacturing capacity beyond its prior $4 billion plan toward a $6 billion target with geographically diversified supply‑chain plans and ongoing BCD scaling and module automation to support higher power‑density applications.
• Gross margin remains near the low end of the company’s model (~55.5%) with only modest Q2 improvement guided and caution about potential second‑half headwinds that could constrain profit expansion despite revenue gains.
• MPS is sampling 800‑volt SiC step‑down solutions, developing GaN for lower‑voltage segments, and pursuing robotics/physical‑AI design wins — signaling longer‑term TAM upside but with uncertain timing and revenue impact.

Monolithic Power Systems Stock Performance

Shares of MPWR stock traded down $8.92 on Monday, hitting $1,574.56. 382,394 shares of the stock traded hands, compared to its average volume of 600,179. Monolithic Power Systems has a twelve month low of $612.95 and a twelve month high of $1,661.79. The firm's 50-day moving average price is $1,228.53 and its two-hundred day moving average price is $1,087.41. The stock has a market capitalization of $77.34 billion, a PE ratio of 113.52, a PEG ratio of 4.01 and a beta of 1.74.

Monolithic Power Systems Increases Dividend

The business also recently declared a quarterly dividend, which was paid on Wednesday, April 15th. Investors of record on Tuesday, March 31st were issued a $2.00 dividend. This is a boost from Monolithic Power Systems's previous quarterly dividend of $1.56. This represents a $8.00 annualized dividend and a dividend yield of 0.5%. The ex-dividend date of this dividend was Tuesday, March 31st. Monolithic Power Systems's payout ratio is 62.79%.

Analyst Ratings Changes

A number of research analysts have issued reports on MPWR shares. Raymond James Financial reissued an "outperform" rating and issued a $1,800.00 target price on shares of Monolithic Power Systems in a research report on Friday. KeyCorp lifted their price target on Monolithic Power Systems from $1,500.00 to $2,000.00 and gave the stock an "overweight" rating in a research report on Friday. Citigroup reiterated a "buy" rating on shares of Monolithic Power Systems in a research note on Friday. TD Cowen increased their price objective on Monolithic Power Systems from $1,550.00 to $1,850.00 and gave the company a "buy" rating in a report on Friday. Finally, Needham & Company LLC raised their price objective on Monolithic Power Systems from $1,300.00 to $1,750.00 and gave the stock a "buy" rating in a research note on Friday. Twelve analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the stock. According to MarketBeat, Monolithic Power Systems presently has a consensus rating of "Moderate Buy" and an average price target of $1,599.17.

Insider Transactions at Monolithic Power Systems

In other Monolithic Power Systems news, EVP Saria Tseng sold 25,674 shares of the company's stock in a transaction dated Monday, March 30th. The shares were sold at an average price of $1,010.50, for a total value of $25,943,577.00. Following the transaction, the executive vice president owned 174,982 shares of the company's stock, valued at $176,819,311. This represents a 12.80% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available through this link. Also, CFO Theodore Blegen sold 21,725 shares of the business's stock in a transaction that occurred on Friday, February 6th. The shares were sold at an average price of $1,171.16, for a total transaction of $25,443,451.00. Following the completion of the sale, the chief financial officer directly owned 82,353 shares in the company, valued at $96,448,539.48. This trade represents a 20.87% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders sold a total of 134,683 shares of company stock valued at $154,749,167 in the last ninety days. 3.40% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

Institutional investors have recently added to or reduced their stakes in the company. State Street Corp boosted its position in shares of Monolithic Power Systems by 2.1% during the 4th quarter. State Street Corp now owns 2,180,419 shares of the semiconductor company's stock worth $1,979,610,000 after acquiring an additional 45,715 shares in the last quarter. Price T Rowe Associates Inc. MD raised its position in shares of Monolithic Power Systems by 7.5% during the 4th quarter. Price T Rowe Associates Inc. MD now owns 1,691,394 shares of the semiconductor company's stock worth $1,533,013,000 after acquiring an additional 117,596 shares in the last quarter. First Trust Advisors LP raised its position in shares of Monolithic Power Systems by 56.6% during the 4th quarter. First Trust Advisors LP now owns 701,454 shares of the semiconductor company's stock worth $635,770,000 after acquiring an additional 253,653 shares in the last quarter. Bank of America Corp DE lifted its stake in Monolithic Power Systems by 18.0% during the second quarter. Bank of America Corp DE now owns 692,747 shares of the semiconductor company's stock worth $506,661,000 after purchasing an additional 105,721 shares during the last quarter. Finally, Morgan Stanley lifted its stake in Monolithic Power Systems by 16.2% during the fourth quarter. Morgan Stanley now owns 649,070 shares of the semiconductor company's stock worth $588,294,000 after purchasing an additional 90,399 shares during the last quarter. Hedge funds and other institutional investors own 93.46% of the company's stock.

About Monolithic Power Systems

Monolithic Power Systems NASDAQ: MPWR is a fabless semiconductor company that designs and supplies high-performance power management solutions for a broad range of electronic systems. Founded in 1997 and headquartered in Kirkland, Washington, the company focuses on analog and mixed-signal integrated circuits that convert, regulate and monitor electrical power with an emphasis on efficiency, integration and power density.

MPS's product portfolio includes DC‑DC switching regulators, power modules, power management ICs (PMICs), LED drivers, battery-management ICs, motor drivers, and AC‑DC power solutions.