Monolithic Power Systems
The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Monolithic Power Systems beat expectations on revenues and earnings per share.
Compared to the prior-year quarter, revenue improved slightly and GAAP earnings per share dropped significantly.
Gross margins increased, operating margins dropped, and net margins dropped.
Monolithic Power Systems tallied revenue of $47.5 million. The 10 analysts polled by S&P Capital IQ expected a top line of $46.4 million on the same basis. GAAP reported sales were 0.9% higher than the prior-year quarter's $47.1 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
Non-GAAP EPS came in at $0.15. The 12 earnings estimates compiled by S&P Capital IQ predicted $0.12 per share on the same basis. GAAP EPS of $0.07 for Q4 were 30% lower than the prior-year quarter's $0.10 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 52.5%, 200 basis points better than the prior-year quarter. Operating margin was 7.0%, 280 basis points worse than the prior-year quarter. Net margin was 5.2%, 240 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $48.0 million. On the bottom line, the average EPS estimate is $0.13.
Next year's average estimate for revenue is $213.6 million. The average EPS estimate is $0.78.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 135 members out of 145 rating the stock outperform, and 10 members rating it underperform. Among 35 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 34 give Monolithic Power Systems a green thumbs-up, and one gives 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 $15.
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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. 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.