Monolithic Power Systems stock falls 5% despite Q1 earnings beat

Published 01/05/2025, 21:20
© Reuters

Investing.com - Monolithic Power Systems, Inc. (NASDAQ:MPWR) reported first-quarter earnings that surpassed analyst expectations, but the stock tumbled 5% as investors appeared unimpressed with the results.

The semiconductor company posted adjusted earnings per share of $4.04, beating the analyst consensus of $4.00. Revenue for the quarter came in at $637.6 million, exceeding estimates of $631.16 million and representing a 39.2% increase YoY from $457.9 million.

Despite the better-than-expected performance, MPWR shares fell 5% following the announcement, suggesting investors were looking for even stronger results or guidance.

For the second quarter, Monolithic Power Systems forecasts revenue between $640 million and $660 million, above the consensus estimate of $633.6 million. The midpoint of this guidance range ($650 million) represents a 2.5% sequential increase from Q1 revenue.

"We are pleased with our strong start to 2025, delivering record first-quarter revenue and earnings," said Michael Hsing, CEO and founder of Monolithic Power Systems. "Our diversified product portfolio and focus on high-growth markets continue to drive our performance."

The company’s non-GAAP gross margin remained steady at 55.7% compared to the same quarter last year. Non-GAAP operating income rose to $221.5 million, a significant increase from $151.6 million in Q1 2024.

Monolithic Power Systems maintains a positive outlook for 2025, projecting a non-GAAP tax rate of 15% for the year and estimating fully diluted shares outstanding between 47.9 million and 48.3 million for the second quarter.

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