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It has been about a month since the last earnings report for Monolithic Power (MPWR). Shares have lost about 24.2% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Monolithic due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.
Monolithic Power Q1 Earnings In Line With Estimates
Monolithic Power reported first-quarter 2019 non-GAAP earnings of 84 cents per share which came in line with the Zacks Consensus Estimate. Notably, the figure improved 6.3% on a year-over-year basis.
Revenues of $141.36 million improved 9.5% from the year-ago quarter, coming within management’s guidance of $138-$144 million. The reported figure came marginally ahead of the Zacks Consensus Estimate of $141.16 million.
Sturdy demand in high-end consumer markets, including the likes of 5G based networking products, lighting and home appliances, aided year-over-year growth.
DC to DC segment (93.9% of total revenues) revenues increased 11.3% year over year to $132.7 million. However, Lighting Control (6.1% of total revenues) declined 12.4% to $8.7 million.
End-Market Highlights
Computing & Storage (27.7% of total revenues) revenues rose 26.5% to $39.2 million. Sales gain in GPU and data center servers, and high end notebooks aided performance.
Industrial (15.1%) revenues advanced 21.6% to $21.3 million, primarily on the back of increased adoption of industrial power supplies and security applications.
Automotive (14.5%) revenues were $20.5 million, up 15.7%. The upside can be attributed to higher product sales for applications in safety, infotainment and connectivity application products.
Communications (15.7%) revenues surged 40.8% to $22.2 million. Sturdy adoption of wireless gateway and 5G networking devices, and home router products drove year-over-year growth.
However, Consumer (27%) revenues declined 19.1% from the year-ago quarter to $38.1 million. The decline can be attributed to sluggishness in broad-based end-market.
Operating Details
Non-GAAP gross margin contracted 30 bps from the year-ago quarter to 55.6%, primarily owing to unfavorable business mix. Management had predicted the figure in the range of 55.3-55.9%.
Non-GAAP operating expenses were $39 million during the reported quarter, up 11.5% on a year-over-year basis.
Non-GAAP operating income grew 6.4% year over year to $39.6 million. Non-GAAP operating margin (as a percentage of revenues) contracted 80 bps from the year-ago quarter to 30.4%.