Monolithic Power Systems
The 10-second takeaway
For the quarter ended March 31 (Q1), Monolithic Power Systems beat expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue expanded and GAAP earnings per share grew significantly.
Margins improved across the board.
Monolithic Power Systems notched revenue of $50.5 million. The nine analysts polled by S&P Capital IQ predicted sales of $48.0 million on the same basis. GAAP reported sales were 14% higher than the prior-year quarter's $44.5 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.17. The nine earnings estimates compiled by S&P Capital IQ predicted $0.13 per share. GAAP EPS of $0.08 for Q1 were 60% higher than the prior-year quarter's $0.05 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 52.3%, 210 basis points better than the prior-year quarter. Operating margin was 6.6%, 50 basis points better than the prior-year quarter. Net margin was 5.9%, 160 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $52.6 million. On the bottom line, the average EPS estimate is $0.18.
Next year's average estimate for revenue is $215.2 million. The average EPS estimate is $0.79.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 136 members out of 148 rating the stock outperform, and 12 members rating it underperform. Among 33 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 31 give Monolithic Power Systems a green thumbs-up, and two 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 $19.29.
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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.