Power Integrations (NASDAQ:POWI) Announces Earnings Results

Key Points

• Power Integrations reported quarterly EPS of $0.25, beating analyst estimates of $0.23, while revenue came in at $108.3 million, also slightly ahead of expectations.
• Management issued upbeat Q2 guidance for revenue of $115 million to $120 million and gross margin of 54% to 55%, signaling expected sequential growth and margin improvement.
• The company highlighted strong momentum in high-voltage GaN products and continued design wins in industrial, appliance, and data center markets, though consumer demand remains uneven and inventory levels are still elevated.

Power Integrations (NASDAQ:POWI - Get Free Report) posted its quarterly earnings data on Thursday. The semiconductor company reported $0.25 earnings per share for the quarter, beating analysts' consensus estimates of $0.23 by $0.02, FiscalAI reports. The business had revenue of $108.31 million for the quarter, compared to analysts' expectations of $106.75 million. Power Integrations had a net margin of 3.72% and a return on equity of 5.32%. The business's revenue was up 2.6% compared to the same quarter last year. During the same quarter in the previous year, the business posted $0.31 earnings per share.

Here are the key takeaways from Power Integrations' conference call:

• Q1 results beat modestly with $108.3M revenue (+3% YoY), non‑GAAP EPS of $0.25, $18M free cash flow and a non‑GAAP gross margin of 53.5%.
• Management guided Q2 revenue of $115M–$120M (midpoint +8.5% sequential) with gross margin expected to rise to 54%–55% and target non‑GAAP operating margin of 13.5%–15.5%.
• Organizational changes to bring customer voice closer to R&D include hiring Mike Balow as SVP Worldwide Sales and moving application engineers into R&D to accelerate time‑to‑market.
• Product and market momentum around high‑voltage GaN — including TinySwitch‑5, TOPSwitchGaN and PowiGaN — with design wins in industrial, appliances and data center; management estimates data‑center SAM (rack + grid) will exceed $1 billion by 2030 and cites engagements with 17 of the top 20 EV OEMs.
• Consumer/appliance demand remains uneven (Q1 consumer down YoY) and balance‑sheet inventory is still elevated with 292 days on hand and ~8.9 weeks channel stock, though both are trending toward company targets.

Power Integrations Stock Performance

Power Integrations stock traded up $1.45 during midday trading on Friday, hitting $73.28. 1,563,139 shares of the company's stock were exchanged, compared to its average volume of 1,207,998. Power Integrations has a 12 month low of $30.86 and a 12 month high of $81.59. The firm has a 50-day moving average of $55.06 and a two-hundred day moving average of $45.36. The company has a market cap of $4.08 billion, a PE ratio of 244.27, a P/E/G ratio of 5.56 and a beta of 1.54.

Power Integrations Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Tuesday, June 30th. Shareholders of record on Friday, May 29th will be issued a dividend of $0.215 per share. This represents a $0.86 annualized dividend and a yield of 1.2%. The ex-dividend date is Friday, May 29th. Power Integrations's dividend payout ratio is presently 286.67%.

Key Headlines Impacting Power Integrations

Here are the key news stories impacting Power Integrations this week:

• Positive Sentiment: Susquehanna raised its price target on Power Integrations to $85 from $70 and reiterated a positive rating, signaling more upside optimism after the latest results. Benzinga The Fly
• Positive Sentiment: Power Integrations reported first-quarter earnings of $0.25 per share, topping estimates, and revenue of $108.3 million versus consensus of $106.8 million, suggesting continued demand resilience. MarketBeat
• Positive Sentiment: The company’s second-quarter revenue guidance of $115 million to $120 million brackets Wall Street’s forecast, which investors may view as a constructive outlook following the earnings release. MarketBeat
• Positive Sentiment: Power Integrations declared a quarterly dividend of $0.215 per share, reinforcing capital return to shareholders. MSN
• Neutral Sentiment: The company appointed semiconductor veteran Mike Balow as senior vice president of worldwide sales, a leadership move that could support future growth but does not have an immediate financial impact. TipRanks
• Neutral Sentiment: The company also noted improving inventory levels, which is encouraging for operations but is still early evidence rather than a confirmed long-term trend. MSN

Wall Street Analyst Weigh In

POWI has been the topic of a number of research analyst reports. Deutsche Bank Aktiengesellschaft restated a "hold" rating on shares of Power Integrations in a report on Friday. Susquehanna upped their price target on shares of Power Integrations from $70.00 to $85.00 and gave the stock a "positive" rating in a report on Friday. Zacks Research upgraded shares of Power Integrations from a "strong sell" rating to a "hold" rating in a report on Thursday, February 26th. Stifel Nicolaus upped their price target on shares of Power Integrations from $56.00 to $62.00 and gave the stock a "buy" rating in a report on Thursday, April 16th. Finally, Northland Securities cut shares of Power Integrations from an "outperform" rating to a "market perform" rating and set a $46.00 price target on the stock. in a report on Monday, April 6th. Three analysts have rated the stock with a Buy rating, three have issued a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat.com, the company presently has a consensus rating of "Hold" and a consensus price target of $64.50.

Insider Buying and Selling at Power Integrations

In other Power Integrations news, VP Gagan Jain sold 3,481 shares of the stock in a transaction dated Wednesday, February 25th. The shares were sold at an average price of $48.22, for a total transaction of $167,853.82. Following the transaction, the vice president directly owned 30,769 shares in the company, valued at $1,483,681.18. This represents a 10.16% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, VP Sunil Gupta sold 1,401 shares of the stock in a transaction dated Monday, February 9th. The stock was sold at an average price of $46.57, for a total transaction of $65,244.57. Following the transaction, the vice president owned 98,205 shares in the company, valued at approximately $4,573,406.85. The trade was a 1.41% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders have sold 21,152 shares of company stock valued at $994,599 in the last 90 days. Insiders own 1.40% of the company's stock.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently added to or reduced their stakes in the business. Geneos Wealth Management Inc. grew its holdings in Power Integrations by 576.3% during the 1st quarter. Geneos Wealth Management Inc. now owns 629 shares of the semiconductor company's stock worth $32,000 after acquiring an additional 536 shares in the last quarter. Kestra Advisory Services LLC purchased a new stake in shares of Power Integrations during the fourth quarter valued at about $36,000. UMB Bank n.a. lifted its position in shares of Power Integrations by 61.7% during the fourth quarter. UMB Bank n.a. now owns 1,074 shares of the semiconductor company's stock valued at $38,000 after buying an additional 410 shares during the last quarter. Osaic Holdings Inc. lifted its position in shares of Power Integrations by 76.2% during the second quarter. Osaic Holdings Inc. now owns 1,721 shares of the semiconductor company's stock valued at $92,000 after buying an additional 744 shares during the last quarter. Finally, Strs Ohio purchased a new stake in shares of Power Integrations during the first quarter valued at about $126,000.

About Power Integrations

Power Integrations, Inc, based in Hillsboro, Oregon, specializes in the design and development of high-performance analog and mixed-signal integrated circuits for energy-efficient power conversion. The company's products are used to convert and regulate electrical power in a wide range of applications, from consumer electronics and industrial systems to communications equipment and electric vehicle charging. By providing compact, reliable, and highly integrated solutions, Power Integrations aims to reduce system size, improve efficiency, and simplify thermal management for its customers.

The firm's product portfolio encompasses isolated and non-isolated switching controllers for both AC-DC and DC-DC power conversion.

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