Monolithic Power Systems (MPWR): Q4 Earnings Beat, Revenue Surges 37%
Company Overview
Monolithic Power Systems (MPWR) is an analog and mixed-signal chipmaker specializing in power management solutions. Founded in 1997, the company has a proven track record of innovation and sustained growth.
Q4 CY2024 Highlights
* Revenue: $621.7 million, a 36.9% year-over-year increase and 2.3% above estimates
* Adjusted EPS: $4.09, a 2.9% beat over consensus expectations
* Adjusted Operating Income: $220.7 million, exceeding estimates by 2%
* Revenue Guidance for Q1 CY2025: $620 million (midpoint), surpassing analyst projections by 6.5%
* Operating Margin: 26.3%, a significant improvement from 24.1% in Q4 CY2023
* Inventory Days Outstanding: 138, a reduction from 140 in Q3 CY2024
Long-Term Growth
* 28.6% annualized revenue growth over the past five years
* 10.9% annualized revenue growth over the last two years, despite industry headwinds
* Projected 35.4% year-on-year sales increase in Q1 CY2025
* Anticipated 16.5% revenue growth over the next 12 months
Product Demand
* Inventory Days Outstanding (DIO) at 138, well below the five-year average
* This indicates strong demand and efficient inventory management
Valuation
* Market Capitalization: $31.9 billion
Key Takeaways
Monolithic Power Systems' Q4 results exceeded analyst expectations in key areas, including revenue, EPS, and guidance. The company's strong performance is supported by its long-term growth strategy and solid product demand. While the stock price initially surged after the earnings report, a comprehensive analysis of business quality and valuation is crucial before making investment decisions.