Latest news with #MichaelHsing
Yahoo
2 days ago
- Business
- Yahoo
3 High-Flying Stocks to Target This Week
"You get what you pay for" often applies to expensive stocks with best-in-class business models and execution. While their quality can sometimes justify the premium, they typically experience elevated volatility during market downturns when expectations change. Finding the right balance between price and quality can challenge even the most skilled investors. Luckily for you, we started StockStory to help you identify the real opportunities. Keeping that in mind, here are three high-flying stocks with strong fundamentals. Forward P/E Ratio: 39.7x Founded in 1997 by its longtime CEO Michael Hsing, Monolithic Power Systems (NASDAQ:MPWR) is an analog and mixed signal chipmaker that specializes in power management chips meant to minimize total energy consumption. Why Is MPWR a Top Pick? Annual revenue growth of 13.1% over the last two years was superb and indicates its market share increased during this cycle Strong free cash flow margin of 29.2% enables it to reinvest or return capital consistently, and its recently improved profitability means it has even more resources to invest or distribute Stellar returns on capital showcase management's ability to surface highly profitable business ventures Monolithic Power Systems is trading at $682.20 per share, or 39.7x forward P/E. Is now the right time to buy? See for yourself in our full research report, it's free. Forward P/E Ratio: 36x Supplying parts for nearly all aircraft currently in service, TransDigm (NYSE:TDG) develops and manufactures components and systems for military and commercial aviation. Why Should You Buy TDG? Core business is healthy and doesn't need acquisitions to boost sales as its organic revenue growth averaged 14.9% over the past two years Performance over the past two years shows its incremental sales were extremely profitable, as its annual earnings per share growth of 30.8% outpaced its revenue gains Robust free cash flow margin of 19.7% gives it many options for capital deployment, and its improved cash conversion implies it's becoming a less capital-intensive business TransDigm's stock price of $1,444 implies a valuation ratio of 36x forward P/E. Is now the time to initiate a position? Find out in our full research report, it's free. Forward P/E Ratio: 30.1x Founded in 2009 as a pioneer in enterprise all-flash storage technology, Pure Storage (NYSE:PSTG) provides all-flash data storage hardware and software that helps organizations manage their data more efficiently across on-premises and cloud environments. Why Do We Love PSTG? ARR trends over the past two years show it's maintaining a steady flow of long-term contracts that contribute positively to its revenue predictability Incremental sales significantly boosted profitability as its annual earnings per share growth of 36.9% over the last five years outstripped its revenue performance PSTG is a free cash flow machine with the flexibility to invest in growth initiatives or return capital to shareholders, and its rising cash conversion increases its margin of safety At $54.01 per share, Pure Storage trades at 30.1x forward P/E. Is now a good time to buy? See for yourself in our in-depth research report, it's free. The market surged in 2024 and reached record highs after Donald Trump's presidential victory in November, but questions about new economic policies are adding much uncertainty for 2025. While the crowd speculates what might happen next, we're homing in on the companies that can succeed regardless of the political or macroeconomic environment. Put yourself in the driver's seat and build a durable portfolio by checking out our Top 5 Strong Momentum Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025). Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-micro-cap company Kadant (+351% five-year return). Find your next big winner with StockStory today for free. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
3 days ago
- Business
- Yahoo
Analog Semiconductors Stocks Q1 Recap: Benchmarking Monolithic Power Systems (NASDAQ:MPWR)
As the craze of earnings season draws to a close, here's a look back at some of the most exciting (and some less so) results from Q1. Today, we are looking at analog semiconductors stocks, starting with Monolithic Power Systems (NASDAQ:MPWR). Demand for analog chips is generally linked to the overall level of economic growth, as analog chips serve as the building blocks of most electronic goods and equipment. Unlike digital chip designers, analog chip makers tend to produce the majority of their own chips, as analog chip production does not require expensive leading edge nodes. Less dependent on major secular growth drivers, analog product cycles are much longer, often 5-7 years. The 15 analog semiconductors stocks we track reported a strong Q1. As a group, revenues beat analysts' consensus estimates by 2.2% while next quarter's revenue guidance was 0.9% above. Luckily, analog semiconductors stocks have performed well with share prices up 15% on average since the latest earnings results. Founded in 1997 by its longtime CEO Michael Hsing, Monolithic Power Systems (NASDAQ:MPWR) is an analog and mixed signal chipmaker that specializes in power management chips meant to minimize total energy consumption. Monolithic Power Systems reported revenues of $637.6 million, up 39.2% year on year. This print exceeded analysts' expectations by 0.7%. Despite the top-line beat, it was still a mixed quarter for the company with a narrow beat of analysts' EPS estimates but an increase in its inventory levels. 'Our proven, long-term growth strategy remains intact as we continue our transformation from being a chip-only, semiconductor supplier to a full service, silicon-based solutions provider,' said Michael Hsing, CEO and founder of MPS. Monolithic Power Systems achieved the fastest revenue growth of the whole group. The stock is up 15.2% since reporting and currently trades at $693.01. Is now the time to buy Monolithic Power Systems? Access our full analysis of the earnings results here, it's free. Taiwan-based Himax Technologies (NASDAQ:HIMX) is a leading manufacturer of display driver chips and timing controllers used in TVs, laptops, and mobile phones. Himax reported revenues of $215.1 million, up 3.7% year on year, outperforming analysts' expectations by 2.4%. The business had an exceptional quarter with an impressive beat of analysts' EPS estimates and revenue guidance for next quarter exceeding analysts' expectations. The market seems happy with the results as the stock is up 14.3% since reporting. It currently trades at $8.53. Is now the time to buy Himax? Access our full analysis of the earnings results here, it's free. Named after the founder's ancestral village in present-day Lithuania, Vishay Intertechnology (NYSE:VSH) manufactures simple chips and electronic components that are building blocks of virtually all types of electronic devices. Vishay Intertechnology reported revenues of $715.2 million, down 4.2% year on year, falling short of analysts' expectations by 0.6%. It was a slower quarter as it posted a significant miss of analysts' EPS estimates. Vishay Intertechnology delivered the weakest performance against analyst estimates in the group. Interestingly, the stock is up 10.4% since the results and currently trades at $14.83. Read our full analysis of Vishay Intertechnology's results here. With its technology found in common consumer electronics such as TVs and smartphones, Magnachip Semiconductor (NYSE:MX) is a provider of analog and mixed-signal semiconductors. Magnachip reported revenues of $44.72 million, up 3% year on year. This print was in line with analysts' expectations. It was a strong quarter as it also produced an impressive beat of analysts' EPS estimates and a solid beat of analysts' adjusted operating income estimates. The stock is up 14.1% since reporting and currently trades at $3.81. Read our full, actionable report on Magnachip here, it's free. Spun out of Motorola in 1999 and built through a series of acquisitions, onsemi (NASDAQ:ON) is a global provider of analog chips specializing in autos, industrial applications, and power management in cloud data centers. onsemi reported revenues of $1.45 billion, down 22.4% year on year. This result surpassed analysts' expectations by 3.1%. Overall, it was an exceptional quarter as it also put up a significant improvement in its inventory levels and a solid beat of analysts' EPS estimates. The stock is up 21% since reporting and currently trades at $50.73. Read our full, actionable report on onsemi here, it's free. In response to the Fed's rate hikes in 2022 and 2023, inflation has been gradually trending down from its post-pandemic peak, trending closer to the Fed's 2% target. Despite higher borrowing costs, the economy has avoided flashing recessionary signals. This is the much-desired soft landing that many investors hoped for. The recent rate cuts (0.5% in September and 0.25% in November 2024) have bolstered the stock market, making 2024 a strong year for equities. Donald Trump's presidential win in November sparked additional market gains, sending indices to record highs in the days following his victory. However, debates continue over possible tariffs and corporate tax adjustments, raising questions about economic stability in 2025. Want to invest in winners with rock-solid fundamentals? Check out our Hidden Gem Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.
Yahoo
15-05-2025
- Business
- Yahoo
MPWR Q1 Earnings Call: Market Diversification and New Design Wins Drive Revenue Beat
Power management chips maker Monolithic Power Systems (NASDAQ:MPWR) reported revenue ahead of Wall Street's expectations in Q1 CY2025, with sales up 39.2% year on year to $637.6 million. The company expects next quarter's revenue to be around $650 million, close to analysts' estimates. Its non-GAAP profit of $4.04 per share was 0.8% above analysts' consensus estimates. Is now the time to buy MPWR? Find out in our full research report (it's free). Revenue: $637.6 million vs analyst estimates of $633.3 million (39.2% year-on-year growth, 0.7% beat) Adjusted EPS: $4.04 vs analyst estimates of $4.00 (0.8% beat) Adjusted EBITDA: $233 million vs analyst estimates of $229.7 million (36.5% margin, 1.4% beat) Revenue Guidance for Q2 CY2025 is $650 million at the midpoint, roughly in line with what analysts were expecting Operating Margin: 26.5%, up from 20.9% in the same quarter last year Free Cash Flow Margin: 30.1%, down from 50.7% in the same quarter last year Inventory Days Outstanding: 146, up from 138 in the previous quarter Market Capitalization: $35.16 billion Monolithic Power Systems delivered revenue above Wall Street's expectations for Q1, with management highlighting the impact of broad-based demand across storage, computing, and automotive segments. CEO Michael Hsing attributed the quarter's results to strong design win momentum, especially in enterprise data and automotive, and emphasized the company's ongoing transformation from a chip supplier to a full-service silicon solutions provider. CFO Bernie Blegen also noted the positive contribution of new product ramps and an improved operating margin compared to last year. Looking ahead, management pointed to continued investment in technology and supply chain diversification as key drivers for the rest of the year. Michael Hsing described growing confidence in the second half due to a backlog of design wins, particularly in enterprise data and automotive, but acknowledged some uncertainty in the timing and magnitude of customer ramps. The company expects revenue for the next quarter to remain steady, with margins influenced by product mix and ongoing supply chain adjustments. Management emphasized that the company's diversified strategy and design wins were central to Q1's performance and set the stage for future growth across several end markets. Enterprise Data Momentum: Management cited broad-based design wins and ramping qualifications with major customers, positioning the company for increased enterprise data revenue later this year. Michael Hsing stated that while visibility is improving, the major ramps are expected in the second half. Automotive Content Expansion: The automotive business posted its third consecutive quarter of double-digit sequential growth. Management credited this to increased content per vehicle, particularly from new power management modules supporting next-generation vehicle platforms in North America and Europe. Storage & Computing Upswing: Segment revenue increased sharply due to both memory and notebook demand. Management said growth was balanced across memory types (like DDR5) and end-user devices, and that results were driven by design wins rather than inventory build-up. Supply Chain Diversification: The company's multi-year effort to localize manufacturing and R&D across regions has improved resilience to tariffs and geopolitical risks. Hsing explained that post-pandemic capacity expansions outside China now support both China and global customers. Transformation to Solutions Provider: Management reiterated its strategy of evolving from a chip-only supplier to a provider of complete silicon-based solutions, including system-level modules for building automation and medical devices. Early customer engagement on these new products was described as encouraging for long-term growth. Management expects steady performance in the upcoming quarter, with future growth dependent on new product qualifications, customer ramps, and continued diversification across end markets. Design Win Ramps: Many recent design wins in enterprise data and automotive are expected to translate into higher revenue later in the year, though the precise timing of customer adoption remains uncertain. Product Mix and Margins: Future margins will be affected by the mix of new versus mature products. Management aims to maintain margins within historical ranges, despite pressure from high-volume, lower-margin products. Supply Chain and Tariffs: Ongoing efforts to diversify manufacturing and R&D are intended to reduce exposure to tariffs and supply interruptions, but shifts in global trade policy or customer behavior could still introduce risks. Tore Svanberg (Stifel): Asked if the current quarter marks a low point for enterprise data and how supply chain diversification is impacting competitiveness; management indicated improved confidence and highlighted the benefits of local manufacturing outside China. Quinn Bolton (Needham): Sought details on the narrowing of enterprise data outlook and the impact of a customer's platform change; management maintained a wide forecast range but expressed confidence due to recent product qualifications. Ross Seymore (Deutsche Bank): Questioned potential segment volatility and customer order behavior related to tariffs; management reported consistent demand and minimal pull-in/push-out effects. Rick Schafer (Oppenheimer): Inquired about timing for significant rack power solution revenue and automotive content drivers; management expects material rack power revenue in 2026 and noted automotive growth is content-driven across multiple regions. William Stein (Truist): Asked about direct tariff impacts and the long-term shift to full-system solutions; management said tariffs are not directly affecting unit costs and described positive customer response to new system-level products. In the next few quarters, the StockStory team will be watching (1) how quickly enterprise data and automotive design wins convert into meaningful revenue, (2) the pace of new product ramps in storage and computing without inventory build-up, and (3) progress in supply chain localization amid shifting trade policies. The company's ability to launch and scale its system-level solutions will also be a critical indicator of its transformation strategy. Monolithic Power Systems currently trades at a forward P/E ratio of 41.4×. Should you load up, cash out, or stay put? The answer lies in our free research report. Donald Trump's victory in the 2024 U.S. Presidential Election sent major indices to all-time highs, but stocks have retraced as investors debate the health of the economy and the potential impact of tariffs. While this leaves much uncertainty around 2025, a few companies are poised for long-term gains regardless of the political or macroeconomic climate, like our Top 5 Strong Momentum Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 176% over the last five years. Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-micro-cap company Kadant (+351% five-year return). Find your next big winner with StockStory today. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
06-05-2025
- Business
- Yahoo
1 of Wall Street's Favorite Stock with Impressive Fundamentals and 2 to Think Twice About
The stocks in this article have caught Wall Street's attention in a big way, with price targets implying returns above 20%. But investors should take these forecasts with a grain of salt because analysts typically say nice things about companies so their firms can win business in other product lines like M&A advisory. Luckily for you, we at StockStory have no conflicts of interest - our sole job is to help you find genuinely promising companies. Keeping that in mind, here is one stock likely to meet or exceed Wall Street's lofty expectations and two where its enthusiasm might be excessive. Consensus Price Target: $68.56 (30% implied return) As a pioneer in 3D mammography technology that has revolutionized breast cancer detection, Hologic (NASDAQ:HOLX) develops and manufactures diagnostic products, medical imaging systems, and surgical devices focused primarily on women's health and wellness. Why Does HOLX Fall Short? Underwhelming constant currency revenue performance over the past two years suggests its product offering at current prices doesn't resonate with customers Costs have risen faster than its revenue over the last five years, causing its adjusted operating margin to decline by 23.2 percentage points Waning returns on capital imply its previous profit engines are losing steam Hologic is trading at $52.73 per share, or 11.9x forward P/E. To fully understand why you should be careful with HOLX, check out our full research report (it's free). Consensus Price Target: $25.32 (20.6% implied return) Founded in 1974, BrightSpring Health Services (NASDAQ:BTSG) offers home health care, hospice, neuro-rehabilitation, and pharmacy services. Why Does BTSG Give Us Pause? Expenses have increased as a percentage of revenue over the last two years as its adjusted operating margin fell by 1 percentage points Capital intensity has ramped up over the last five years as its free cash flow margin decreased by 4.9 percentage points Underwhelming 5.5% return on capital reflects management's difficulties in finding profitable growth opportunities At $21.00 per share, BrightSpring Health Services trades at 33.1x forward P/E. If you're considering BTSG for your portfolio, see our FREE research report to learn more. Consensus Price Target: $754.60 (20.1% implied return) Founded in 1997 by its longtime CEO Michael Hsing, Monolithic Power Systems (NASDAQ:MPWR) is an analog and mixed signal chipmaker that specializes in power management chips meant to minimize total energy consumption. Why Are We Bullish on MPWR? Annual revenue growth of 13.1% over the last two years was superb and indicates its market share increased during this cycle Impressive free cash flow profitability enables the company to fund new investments or reward investors with share buybacks/dividends ROIC punches in at 45.7%, illustrating management's expertise in identifying profitable investments Monolithic Power Systems's stock price of $628.38 implies a valuation ratio of 36.6x forward P/E. Is now the time to initiate a position? See for yourself in our full research report, it's free. The market surged in 2024 and reached record highs after Donald Trump's presidential victory in November, but questions about new economic policies are adding much uncertainty for 2025. While the crowd speculates what might happen next, we're homing in on the companies that can succeed regardless of the political or macroeconomic environment. Put yourself in the driver's seat and build a durable portfolio by checking out our Top 5 Strong Momentum Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 175% over the last five years. Stocks that made our list in 2019 include now familiar names such as Nvidia (+2,183% between December 2019 and December 2024) as well as under-the-radar businesses like United Rentals (+322% five-year return). Find your next big winner with StockStory today for free.
Yahoo
01-05-2025
- Business
- Yahoo
Monolithic Power Systems (NASDAQ:MPWR) Reports Q1 Results
Power management chips maker Monolithic Power Systems (NASDAQ:MPWR) beat Wall Street's revenue expectations in Q1 CY2025, with sales up 39.2% year on year to $637.6 million. Guidance for next quarter's revenue was optimistic at $650 million at the midpoint, 2.3% above analysts' estimates. Its non-GAAP profit of $4.04 per share was 0.9% above analysts' consensus estimates. Is now the time to buy Monolithic Power Systems? Find out in our full research report. Revenue: $637.6 million vs analyst estimates of $633.3 million (39.2% year-on-year growth, 0.7% beat) Adjusted EPS: $4.04 vs analyst estimates of $4.00 (0.9% beat) Adjusted Operating Income: $221.5 million vs analyst estimates of $219.9 million (34.7% margin, 0.7% beat) Revenue Guidance for Q2 CY2025 is $650 million at the midpoint, above analyst estimates of $635.7 million Operating Margin: 26.5%, up from 20.9% in the same quarter last year Free Cash Flow Margin: 40.2%, down from 50.7% in the same quarter last year Market Capitalization: $28.39 billion 'Our proven, long-term growth strategy remains intact as we continue our transformation from being a chip-only, semiconductor supplier to a full service, silicon-based solutions provider,' said Michael Hsing, CEO and founder of MPS. Founded in 1997 by its longtime CEO Michael Hsing, Monolithic Power Systems (NASDAQ:MPWR) is an analog and mixed signal chipmaker that specializes in power management chips meant to minimize total energy consumption. A company's long-term sales performance can indicate its overall quality. Any business can have short-term success, but a top-tier one grows for years. Luckily, Monolithic Power Systems's sales grew at an incredible 29.6% compounded annual growth rate over the last five years. Its growth surpassed the average semiconductor company and shows its offerings resonate with customers, a great starting point for our analysis. Semiconductors are a cyclical industry, and long-term investors should be prepared for periods of high growth followed by periods of revenue contractions (which can sometimes offer opportune times to buy). Long-term growth is the most important, but short-term results matter for semiconductors because the rapid pace of technological innovation (Moore's Law) could make yesterday's hit product obsolete today. Monolithic Power Systems's annualized revenue growth of 13.1% over the last two years is below its five-year trend, but we still think the results suggest healthy demand. This quarter, Monolithic Power Systems reported wonderful year-on-year revenue growth of 39.2%, and its $637.6 million of revenue exceeded Wall Street's estimates by 0.7%. Beyond the beat, this marks 5 straight quarters of growth, implying that Monolithic Power Systems is in the middle of its cycle - a typical upcycle generally lasts 8-10 quarters. Company management is currently guiding for a 28.1% year-on-year increase in sales next quarter. Looking further ahead, sell-side analysts expect revenue to grow 11.8% over the next 12 months, similar to its two-year rate. Despite the slowdown, this projection is admirable and suggests the market sees success for its products and services. Software is eating the world and there is virtually no industry left that has been untouched by it. That drives increasing demand for tools helping software developers do their jobs, whether it be monitoring critical cloud infrastructure, integrating audio and video functionality, or ensuring smooth content streaming. Click here to access a free report on our 3 favorite stocks to play this generational megatrend. Days Inventory Outstanding (DIO) is an important metric for chipmakers, as it reflects a business' capital intensity and the cyclical nature of semiconductor supply and demand. In a tight supply environment, inventories tend to be stable, allowing chipmakers to exert pricing power. Steadily increasing DIO can be a warning sign that demand is weak, and if inventories continue to rise, the company may have to downsize production. This quarter, Monolithic Power Systems's DIO came in at NaN, It was encouraging to see Monolithic Power Systems's revenue guidance for next quarter beat analysts' expectations. We were also happy its EPS narrowly outperformed Wall Street's estimates. Overall, this print had some key positives. The market seemed to be hoping for more, and the stock traded down 5.3% to $570 immediately after reporting. Should you buy the stock or not? When making that decision, it's important to consider its valuation, business qualities, as well as what has happened in the latest quarter. We cover that in our actionable full research report which you can read here, it's free.
