Latest news with #Semiconductor
Yahoo
6 hours ago
- Business
- Yahoo
Monolithic Power Systems (NASDAQ:MPWR) Surprises With Q2 Sales, Provides Optimistic Revenue Guidance for Next Quarter
Power management chips maker Monolithic Power Systems (NASDAQ:MPWR) announced better-than-expected revenue in Q2 CY2025, with sales up 31% year on year to $664.6 million. On top of that, next quarter's revenue guidance ($720 million at the midpoint) was surprisingly good and 5.7% above what analysts were expecting. Its non-GAAP profit of $4.21 per share was 2.2% above analysts' consensus estimates. Is now the time to buy Monolithic Power Systems? Find out in our full research report. Monolithic Power Systems (MPWR) Q2 CY2025 Highlights: Revenue: $664.6 million vs analyst estimates of $652.1 million (31% year-on-year growth, 1.9% beat) Adjusted EPS: $4.21 vs analyst estimates of $4.12 (2.2% beat) Adjusted Operating Income: $231.2 million vs analyst estimates of $226.4 million (34.8% margin, 2.1% beat) Revenue Guidance for Q3 CY2025 is $720 million at the midpoint, above analyst estimates of $681 million Operating Margin: 24.8%, up from 23% in the same quarter last year Inventory Days Outstanding: 150, up from 146 in the previous quarter Market Capitalization: $34.98 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. Company Overview 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. Revenue Growth Examining a company's long-term performance can provide clues about its quality. Even a bad business can shine for one or two quarters, but a top-tier one grows for years. Thankfully, Monolithic Power Systems's 29.9% annualized revenue growth over the last five years was incredible. 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). We at StockStory place the most emphasis on long-term growth, but within semiconductors, a half-decade historical view may miss new demand cycles or industry trends like AI. Monolithic Power Systems's annualized revenue growth of 17.3% 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 31%, and its $664.6 million of revenue exceeded Wall Street's estimates by 1.9%. Beyond the beat, this marks 6 straight quarters of growth, showing that the current upcycle has had a good run - a typical upcycle usually lasts 8-10 quarters. Company management is currently guiding for a 16.1% year-on-year increase in sales next quarter. Looking further ahead, sell-side analysts expect revenue to grow 10.1% over the next 12 months, a deceleration versus the last two years. Despite the slowdown, this projection is commendable and implies the market sees success for its products and services. Here at StockStory, we certainly understand the potential of thematic investing. Diverse winners from Microsoft (MSFT) to Alphabet (GOOG), Coca-Cola (KO) to Monster Beverage (MNST) could all have been identified as promising growth stories with a megatrend driving the growth. So, in that spirit, we've identified a relatively under-the-radar profitable growth stock benefiting from the rise of AI, available to you FREE via this link. Product Demand & Outstanding Inventory 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 150, which is 12 days below its five-year average. These numbers show that despite the recent increase, there's no indication of an excessive inventory buildup. Key Takeaways from Monolithic Power Systems's Q2 Results It was great to see Monolithic Power Systems's revenue guidance for next quarter top analysts' expectations. We were also happy its adjusted operating income outperformed Wall Street's estimates. On the other hand, its inventory levels increased. Overall, we think this was a solid quarter with some key areas of upside. The stock traded up 4.9% to $747.50 immediately after reporting. Indeed, Monolithic Power Systems had a rock-solid quarterly earnings result, but is this stock a good investment here? What happened in the latest quarter matters, but not as much as longer-term business quality and valuation, when deciding whether to invest in this stock. We cover that in our actionable full research report which you can read here, it's free. Fehler beim Abrufen der Daten Melden Sie sich an, um Ihr Portfolio aufzurufen. Fehler beim Abrufen der Daten Fehler beim Abrufen der Daten Fehler beim Abrufen der Daten Fehler beim Abrufen der Daten
Yahoo
16 hours ago
- Business
- Yahoo
Entegris (ENTG) Nosedives 14.46% on Dismal Earnings
We recently published . Entegris, Inc. (NASDAQ:ENTG) is one of the worst-performing stocks on Tuesday. Entegris nosedived by 14.46 percent on Wednesday to close at $79.34 apiece as investors soured on its dismal earnings performance and shunned a highly confident outlook for the current quarter of the year. In its updated report, Entegris, Inc. (NASDAQ:ENTG) said that net income dropped by 22 percent in the second quarter of the year to $52.8 million from $67.7 million in the same period last year. Net sales also dipped by 2.5 percent to $792.4 million from $812.7 million year-on-year. Close-up of Silicon Die are being Extracted from Semiconductor Wafer and Attached to Substrate by Pick and Place Machine. Computer Chip Manufacturing at Fab. Semiconductor Packaging Process. 'Semiconductor industry trends are largely unchanged. AI-enabled applications are driving significant growth in advanced logic and HBM. However, elsewhere, fab activity remains subdued. And in the short term, the uncertainty around trade policies and the macroeconomic environment will continue to have an impact on semiconductor demand,' said Entegris, Inc. (NASDAQ:ENTG) President and CEO Bertrand Loy. Despite the disappointing figures, Loy said that the company is highly optimistic about its business outlook for the rest of the year. 'Looking further ahead, nothing has changed in our long-term view of the industry. We remain very optimistic and continue to have high confidence in the strong long-term growth outlook for the market and Entegris,' he noted. While we acknowledge the potential of ENTG as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the .
Globe and Mail
18 hours ago
- Business
- Globe and Mail
The Best Semiconductor Stock to Buy?
Semiconductor stocks are garnering increasing interest from investors because of the role they play in the growth of artificial intelligence. Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Learn More » *Stock prices used were the afternoon prices of July 28, 2025. The video was published on July 30, 2025. Don't miss this second chance at a potentially lucrative opportunity Ever feel like you missed the boat in buying the most successful stocks? Then you'll want to hear this. On rare occasions, our expert team of analysts issues a 'Double Down' stock recommendation for companies that they think are about to pop. If you're worried you've already missed your chance to invest, now is the best time to buy before it's too late. And the numbers speak for themselves: Nvidia: if you invested $1,000 when we doubled down in 2009, you'd have $455,174!* Apple: if you invested $1,000 when we doubled down in 2008, you'd have $40,107!* Netflix: if you invested $1,000 when we doubled down in 2004, you'd have $630,291!* Right now, we're issuing 'Double Down' alerts for three incredible companies, available when you join Stock Advisor, and there may not be another chance like this anytime soon. See the 3 stocks » *Stock Advisor returns as of July 29, 2025 Parkev Tatevosian, CFA has positions in Nvidia. The Motley Fool has positions in and recommends ASML, Advanced Micro Devices, Intel, Nvidia, and Taiwan Semiconductor Manufacturing. The Motley Fool recommends the following options: short August 2025 $24 calls on Intel. The Motley Fool has a disclosure policy. Parkev Tatevosian is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through his link, he will earn some extra money that supports his channel. His opinions remain his own and are unaffected by The Motley Fool.
Yahoo
a day ago
- Business
- Yahoo
FormFactor (NASDAQ:FORM) Surprises With Q2 Sales But Stock Drops 16%
Semiconductor testing company FormFactor (NASDAQ:FORM) reported revenue ahead of Wall Street's expectations in Q2 CY2025, but sales were flat year on year at $195.8 million. The company expects next quarter's revenue to be around $200 million, close to analysts' estimates. Its non-GAAP profit of $0.27 per share was 10% below analysts' consensus estimates. Is now the time to buy FormFactor? Find out in our full research report. FormFactor (FORM) Q2 CY2025 Highlights: Revenue: $195.8 million vs analyst estimates of $189.4 million (flat year on year, 3.4% beat) Adjusted EPS: $0.27 vs analyst expectations of $0.30 (10% miss) Adjusted Operating Income: $22.85 million vs analyst estimates of $23.94 million (11.7% margin, 4.6% miss) Revenue Guidance for Q3 CY2025 is $200 million at the midpoint, roughly in line with what analysts were expecting Adjusted EPS guidance for Q3 CY2025 is $0.25 at the midpoint, below analyst estimates of $0.33 Operating Margin: 6.3%, down from 9% in the same quarter last year Free Cash Flow was -$47.1 million, down from $13.48 million in the same quarter last year Inventory Days Outstanding: 82, down from 94 in the previous quarter Market Capitalization: $2.67 billion 'FormFactor reported sequentially stronger second-quarter revenue that exceeded the high end of our outlook range, due to higher-than-anticipated growth in our probe-card business,' said Mike Slessor, CEO of FormFactor, Company Overview With customers across the foundry and fabless markets, FormFactor (NASDAQ:FORM) is a US-based provider of test and measurement technologies for semiconductors. Revenue Growth A company's long-term performance is an indicator of its overall quality. Any business can experience short-term success, but top-performing ones enjoy sustained growth for years. Regrettably, FormFactor's sales grew at a sluggish 3.7% compounded annual growth rate over the last five years. This was below our standard for the semiconductor sector and is a rough 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. We at StockStory place the most emphasis on long-term growth, but within semiconductors, a half-decade historical view may miss new demand cycles or industry trends like AI. FormFactor's annualized revenue growth of 6.8% over the last two years is above its five-year trend, suggesting its demand recently accelerated. This quarter, FormFactor's $195.8 million of revenue was flat year on year but beat Wall Street's estimates by 3.4%. Despite the beat, this was its third consecutive quarter of decelerating growth, indicating a potential cyclical downturn. Company management is currently guiding for a 3.8% year-on-year decline in sales next quarter. Looking further ahead, sell-side analysts expect revenue to grow 4.6% over the next 12 months, a slight deceleration versus the last two years. This projection doesn't excite us and implies its products and services will see some demand headwinds. Unless you've been living under a rock, it should be obvious by now that generative AI is going to have a huge impact on how large corporations do business. While Nvidia and AMD are trading close to all-time highs, we prefer a lesser-known (but still profitable) stock benefiting from the rise of AI. Click here to access our free report one of our favorites growth stories. Product Demand & Outstanding Inventory 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, FormFactor's DIO came in at 82, which is 13 days below its five-year average. At the moment, these numbers show no indication of an excessive inventory buildup. Key Takeaways from FormFactor's Q2 Results We were impressed by FormFactor's strong improvement in inventory levels. We were also happy its revenue outperformed Wall Street's estimates. On the other hand, its EPS missed and its adjusted operating income fell short of Wall Street's estimates. Overall, this was a softer quarter. The stock traded down 16% to $28.91 immediately following the results. FormFactor didn't show it's best hand this quarter, but does that create an opportunity to buy the stock right now? What happened in the latest quarter matters, but not as much as longer-term business quality and valuation, when deciding whether to invest in this stock. We cover that in our actionable full research report which you can read here, it's 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
a day ago
- Business
- Yahoo
Teradyne Stock Leads S&P 500 Gainers After Better-Than-Expected Results
Shares of Teradyne (TER) paced S&P 500 advancers Wednesday, a day after the automatic test equipment manufacturer posted strong second-quarter results, paced by gains in its Semiconductor Test Group. The North Reading, Mass.-based firm reported adjusted earnings per share of $0.57, while analysts surveyed by Visible Alpha had anticipated $0.54. Revenue fell nearly 11% year-over-year to $651.8 million but also beat estimates. Semiconductor Test Group revenue of $492 million topped expectations of $488.6 million. Teradyne also generated revenue of $75 million in Robotics and $85 million in its Product Test segment. "System-on-a-Chip (SOC), primarily for artificial intelligence applications, was the strongest growth driver," Teradyne CEO Greg Smith said. "Visibility into the remainder of the year has improved, and demand in compute, networking and memory is strengthening. The exact timing of program ramps and capacity adds remain uncertain, but we believe that AI will drive strong second half performance for Teradyne." Teradyne's third-quarter projections of adjusted EPS between $0.69 and $0.87 and revenue of $710 million to $770 million were mostly below estimates but represent sequential growth from Q2. Shares soared about 20% in recent trading but remain more than 12% lower in 2025. Read the original article on Investopedia 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
