Monolithic Power (MPWR) Q4 Earnings & Revenues Top Estimates

Monolithic Power Systems, Inc. MPWR reported fourth-quarter 2021 non-GAAP earnings of $2.12 per share, which beat the Zacks Consensus Estimate by 13.4%. The bottom line improved 61.8% on a year-over-year basis.

Revenues of $336.5 million rose 44.4% from the year-ago quarter’s figure and surpassed the Zacks Consensus Estimate by 4.8%. On a sequential basis, the top line grew 4%. Solid demand across the automotive, industrial, computing and storage, and communications markets drove year-over-year growth.

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

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

By end market, computing and storage (35.2% of total revenues) revenues increased 91.6% year over year to $118.5 million. The performance was driven by an increase in market share for storage applications.

Automotive (16.7%) revenues were $56.4 million, up 43.1% from the prior-year quarter’s figure. The company has been witnessing sales growth in infotainment, lighting and Advanced Driver Assistance Systems or ADAS products.

Industrial (14.8%) revenues surged 33.4% year over year to $49.5 million, courtesy of higher industrial meters and power sources sales.

Communications (13.6%) revenues grew 54.5% to $45.9 million.

Consumer (19.7%) revenues inched up 1.8% from the year-ago quarter to $66.3 million.

By product family, revenues in DC to DC (95% of total revenues) surged 45.4% year over year to $319.7 million. Lighting Control (5%) revenues rallied 28% to $16.8 million.

Monolithic Power’s strong financial performance in 2021 was largely due to a 40% increase in fab and assembly capacity, which supported its high-value, greenfield-product, revenue ramp. The company is on track to expand capacity in 2022 well beyond $2 billion, which will allow it to ramp new product revenues and achieve market share gains in the coming years.

Other Details

Non-GAAP gross margin expanded 220 basis points (bps) from the year-ago quarter’s level to 57.9%. Non-GAAP operating expenses amounted to $83 million, up 30.5% year over year. Non-GAAP operating income rose 68.9% year over year to $112 million.

As of Dec 31, 2021, the company had cash and cash equivalents of $189.3 million with $67.2 million of other long-term liabilities.

Monolithic Power’s board of directors has approved an increase in quarterly cash dividend from 60 cents to 75 cents per share.

Guidance

For the first quarter of 2022, the company projects revenues between $354 million and $366 million. Non-GAAP gross margin is expected between 57.7% and 58.3%.

Zacks Rank & Other Stocks to Consider

Monolithic Power currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Vocera Communications, Inc. VCRA is another top-ranked stock in the broader Zacks Computer and Technology sector that sports a Zacks Rank #1. The Zacks Consensus Estimate for its current-year earnings has been revised upward by 6.2% over the past 60 days.

Vocera Communications has a trailing four-quarter earnings surprise of 109.6%, on average. The stock has returned 49.6% in the past year.

SeaChange International, Inc. SEAC carries a Zacks Rank #2. The consensus estimate for current-year earnings has been revised upward by 10% over the past 60 days.

SeaChange International has a trailing four-quarter earnings surprise of 37.2%, on average. The stock has, however, declined 17.3% in the past year.

Qualcomm, Inc. QCOM, carrying a Zacks Rank #2, is a solid pick for investors. The consensus estimate for current-year earnings has been revised 0.7% upward over the past 60 days.

Qualcomm has a trailing four-quarter earnings surprise of 12.2%, on average. It has appreciated 17.6% in the past year.

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