Monolithic Power Q4 Earnings Beat Estimate on Solid Revenue Growth

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Zacks Equity Research

Fri, Feb 7, 2025, 7:47 AM 5 min read

Monolithic Power Systems, Inc. MPWR reported strong fourth-quarter 2024 results, wherein the top and bottom lines beat the respective Zacks Consensus Estimates. The Kirkland, WA-based company witnessed healthy revenue growth year over year, backed by solid momentum in the Enterprise Data, Automotive, Storage and Computing verticals.

Find the latest EPS estimates and surprises on Zacks Earnings Calendar

Net Income

Net income, on a GAAP basis, was $1.44 billion or $29.88 per share compared with $96.9 million or $1.98 per share in the prior-year quarter. Top line expansion and income tax benefit boosted the net income.

Non-GAAP net income improved to $198.4 million or $4.09 per share, from $140.9 million or $2.88 per share, in the year-ago quarter. The bottom line beat the Zacks Consensus Estimate by 8 cents.

In 2024, on a GAAP basis, the company reported a net income of $1.78 billion or $36.59 per share compared with $427.4 million or $8.76 per share in 2023. Non-GAAP net income was $689.8 million or $14.12 per share, up from $574.6 million or $11.78 per share, in 2023.

Monolithic Power Systems, Inc. Price, Consensus and EPS Surprise

Monolithic Power Systems, Inc. price-consensus-eps-surprise-chart | Monolithic Power Systems, Inc. Quote

Revenues

Monolithic Power registered revenues of $621.7 million, up from $454 million in the prior-year quarter. The top line beat the Zacks Consensus Estimate of $607 million.

In 2024, the company reported revenues of $2.2 billion compared to $1.82 billion in 2023.

Revenues from Storage and Computing rose to $136.5 million from $117.3 million in the prior-year quarter. The figure beat Zacks Consensus Estimate of $135.27 million. Higher sales in graphic cards supported the net sales growth.

Net sales from Enterprise Data improved to $194.9 million from $128.9 million in the year-ago quarter, surpassing Zacks Consensus Estimate of $190.28 million. Healthy demand for power management solutions for AI and server applications supported the top line.

In the fourth quarter, the Automotive segment contributed $128.4 million in revenues compared with $89.8 million in the year-ago quarter. The figure beat Zacks Consensus Estimate of $112.05 million. Strong demand for advanced driver assistance systems and infotainment power solutions boosted the top line.

Industrial revenues were $40.8 million compared with $33.4 million in the year-ago quarter.

The Communications vertical reported $63.8 million in revenues compared with $40.9 million in the year-ago quarter. The segment benefited from a healthy demand for power solutions for optical modules and routers. However, lower sales of networking solutions during the quarter partially reversed this positive trend.

Net sales from the Consumer segment increased to $57.3 million from $43.7 million in the year-ago quarter.

Other Details

Non-GAAP gross margin was 55.8%, marginally up from 55.7% reported in the year-ago quarter. Non-GAAP operating expenses were $126.1 million compared with $96.7 million in the prior-year period. Non-GAAP operating income was $220.7 million, up from $156.1 million.

Cash Flow & Liquidity

During the December quarter, the company generated an operating cash flow of $167.7 million compared to $153.3 million in prior-year quarter.

As of Dec. 31, 2024, cash and cash equivalents totaled $691.8 million, with $111.6 million in other long-term liabilities compared to respective tallies of $527.8 million and $88.6 million in the previous year.

MPWR Provides Q1 FY25 Outlook

For the first quarter of 2025, the company estimates revenues to be in the range of $610-$630 million. Non-GAAP gross margin is expected to be between 55.4% and 56%. Non-GAAP operating expenses are projected between $126.9 million and $130.9 million. Total stock-based compensation expenses are expected to be in the range of $55-$57 million.

MPWR’s Zacks Rank & Other Stocks to Consider

Monolithic currently carries a Zacks Rank #4 (Sell).

Here are other top-ranked stocks that investors may consider.

Keysight Technologies, Inc. KEYS has a Zacks Rank of 2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

In the last reported quarter, it delivered an earnings surprise of 5.10%. Keysight is expected to benefit from the growing proliferation of electronic content in vehicles, momentum in space and satellite applications and rising adoption of driver-assistance systems globally.

InterDigital IDCC carries a Zacks Rank #2 at present. It delivered an earnings surprise of 158.41%, on average, in the trailing four quarters.

It is a pioneer in advanced mobile technologies that enable wireless communications and capabilities. The company designs and develops a wide range of advanced technology solutions used in digital cellular, wireless 3G, 4G and IEEE 802-related products and networks.

Zillow Group, Inc. ZG carries a Zacks Rank #2 at present. In the last reported quarter, it delivered an earnings surprise of 9.38%. ZG delivered an earnings surprise of 25.47%, on average, in the trailing four quarters. The company is witnessing solid momentum in rental revenues, driven by growth in multi- and single-family listings, which is a positive factor.

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