Latest news with #MonolithicPowerSystems
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
14-05-2025
- Business
- Yahoo
Monolithic Power Systems (NasdaqGS:MPWR) Sees 38% Stock Price Surge Over Last Month
Monolithic Power Systems reported strong quarterly earnings for the first quarter of 2025, with sales and net income showing notable increases compared to the previous year. This positive earnings performance was accompanied by a bullish corporate guidance for the upcoming quarter, projecting revenues between USD 640 million and USD 660 million. The company's stock experienced a significant 38% rise over the last month. While the overall market saw a modest 4% rise during the same period, Monolithic Power Systems' impressive financial results likely added weight to its substantial share price movement. You should learn about the 4 risks we've spotted with Monolithic Power Systems (including 2 which are concerning). Uncover 19 companies that survived and thrived after COVID and have the right ingredients to survive Trump's tariffs. The recent performance of Monolithic Power Systems has painted a promising picture, driven by strong quarterly earnings and a bullish outlook. This aligns with the company's strategic shift towards full-service silicon-based solutions, aimed at fostering growth and enhancing operational efficiencies. Over the last five years, Monolithic Power Systems has achieved a substantial total return of 279.00%, highlighting its growth trajectory. Despite this long-term success, the company underperformed against the US Semiconductor industry over the past year, where the industry achieved an 18.5% return. The recent news of robust earnings may bolster revenue forecasts, especially with strong prospects in automotive and AI-related data centers. Analysts anticipate annual revenue growth of 12.8% over the next three years, though earnings are expected to face a 15.3% annual decline. The projected increase in revenue could be a result of expected gains in market share and revenue ramps in key segments such as enterprise data. Despite the current share price of US$622.99, the consensus price target sits higher at US$754.60, implying a 17.4% increase based on these forecasts. Investors may consider this in evaluating the potential upside, acknowledging the accompanying risks in revenue growth assumptions and market volatility. Assess Monolithic Power Systems' previous results with our detailed historical performance reports. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include NasdaqGS:MPWR. Have feedback on this article? Concerned about the content? with us directly. Alternatively, email editorial-team@ Error while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data
Yahoo
02-05-2025
- Business
- Yahoo
Monolithic Power Systems (NasdaqGS:MPWR) Reports Earnings Surge With Revenue US$638 Million
Monolithic Power Systems recently announced substantial growth in Q1 2025, with sales reaching USD 638 million and net income rising to USD 134 million, while projecting positive revenue guidance for Q2. This announcement was timely, coinciding with a broader market upswing driven by strong employment data and positive developments in U.S.-China trade talks. The company's stock rose 4% last week, reflecting strong earnings and market optimism, in line with the S&P 500 and Nasdaq Composite's advances of 2%, bolstered further by robust quarterly corporate results and AI-focused growth narratives from tech giants Microsoft and Meta. We've spotted 4 possible red flags for Monolithic Power Systems you should be aware of, and 2 of them are a bit concerning. Find companies with promising cash flow potential yet trading below their fair value. The recent announcement of Monolithic Power Systems' strong Q1 2025 performance, with sales hitting US$638 million and a net income jump to US$134 million, aligns with its strategy of innovation and diversification emphasized in the narrative. The introduction of silicon carbide inverters and automotive products is expected to drive future revenue growth. However, it underscores the importance of executing new product ramps to sustain this momentum. The positive revenue guidance for Q2 supports the narrative's focus on emerging market opportunities and product diversification, potentially boosting forecasts in the short term. Over the past five years, Monolithic Power Systems has achieved an impressive total return of 207.16%, reflecting a significant appreciation in its share price, coupled with dividends. This long-term performance contrasts with the more recent one-year period where the company underperformed the US market's return of 9.5% and the Semiconductor industry's return of 11.7%. Such disparity highlights potential challenges and market conditions faced recently. The stock's recent 4% rise aligns with strong quarterly results and optimistic market conditions but remains below the consensus analyst price target of US$759.81. This suggests a potential for further upside. The current price of US$586.74 signals a 22.8% discount to the target, indicating market skepticism or an undervaluation by investors according to analyst projections. As the company continues to capitalize on its strategic initiatives, market sentiment may adjust, impacting revenue and earnings forecasts positively. Understand Monolithic Power Systems' track record by examining our performance history report. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include NasdaqGS:MPWR. Have feedback on this article? Concerned about the content? with us directly. Alternatively, email editorial-team@ Sign in to access your portfolio
