Monolithic Power Systems Hits Estimates, But GAAP Results Lag Last Year's (MPWR)

Monolithic Power Systems Hits Estimates, But GAAP Results Lag Last Year's

Monolithic Power Systems (Nasdaq: MPWR ) reported earnings on Feb. 6. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Monolithic Power Systems met expectations on revenues and met expectations on earnings per share.

Compared to the prior-year quarter, revenue increased slightly and GAAP earnings per share dropped significantly.

Gross margins grew, operating margins dropped, net margins dropped.

Revenue details
Monolithic Power Systems logged revenue of $48.2 million. The nine analysts polled by S&P Capital IQ anticipated a top line of $48.2 million on the same basis. GAAP reported sales were the same as the prior-year quarter's.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
EPS came in at $0.21. The seven earnings estimates compiled by S&P Capital IQ forecast $0.21 per share. GAAP EPS of $0.01 for Q4 were 86% lower than the prior-year quarter's $0.07 per share.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 53.0%, 50 basis points better than the prior-year quarter. Operating margin was -3.4%, 1,040 basis points worse than the prior-year quarter. Net margin was 0.5%, 470 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $49.4 million. On the bottom line, the average EPS estimate is $0.16.

Next year's average estimate for revenue is $225.5 million. The average EPS estimate is $0.95.

Investor sentiment
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 132 members out of 144 rating the stock outperform, and 12 members rating it underperform. Among 32 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 28 give Monolithic Power Systems a green thumbs-up, and four give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Monolithic Power Systems is outperform, with an average price target of $23.00.

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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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