Don't let it get away!
Keep track of the stocks that matter to you.
Help yourself with the Fool's FREE and easy new watchlist service today.
Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Just one quarter after thoroughly disappointing analysts, shares of Monolithic Power Systems (Nasdaq: MPWR ) surged as much as 12% on better-than-expected earnings.
So what: Profit checked in $0.18 per share on a Non-GAAP basis, $0.04 better than the consensus estimate, according to Yahoo! Finance. Management also announced a $20 million increase in its active stock repurchase program.
Now what: Buybacks have had the desired effect. Diluted shares outstanding dipped to 36.7 million in Q4, from 37.4 million the prior-year quarter, adding needed juice to the bottom line. Future repurchases will be paid from Monolithic’s war chest, which included $177 million in cash and short-term investments as of Dec. 31.
That’s the good news. The bad is that Monolithic Power has experienced a massive dropoff in revenue growth, which hasn’t yet tarnished direct competitors Analog Devices (NYSE: ADI ) and Texas Instruments (NYSE: TXN ) . Revenue growth will have to return for investors to realize healthy returns from here.