Monolithic Power Systems (MPWR) Dips 3% After Earnings After Massive Run

"Monolithic Power Systems ( NASDAQ: MPWR) delivered a fifth consecutive earnings beat after the close Thursday, posting $4.73 in adjusted EPS against a $4.63 estimate and $737.18M in revenue versus $720.92M expected. The stock slipped 3% in after-hours trading, a modest pullback after surging through October and hitting a 52-week high just before the report. Investors had already priced in strong execution. The real question now is whether the company can sustain this momentum into 2026."

"Enterprise Data revenue hit $191.48M, the largest segment contributor, while Storage and Computing came in at $186.57M. Automotive delivered $151.54M. The company's overall revenue grew 18.9% year over year and 10.9% quarter over quarter, reflecting broad-based demand across data center, edge computing, and electrification markets. Net income climbed 23.4% year over year to $178.27M. Operating income rose 19.0% to $195.18M. GAAP gross margin expanded to 55.1%, a level that underscores the company's pricing power and operational efficiency in a competitive semiconductor landscape."

"Management guided Q4 revenue to a range of $730M to $750M, implying growth of 1.8% to 5.0% sequentially. That's a meaningful deceleration from Q3's 10.9% quarter-over-quarter pace. Gross margin guidance sits at 54.9% to 55.5% on a GAAP basis, essentially flat with current levels. Operating expenses are expected to land between $206.8M and $212.8M. The sequential slowdown reflects typical seasonal patterns but also signals that management isn't expecting a sharp acceleration in demand as the year closes."

Monolithic Power Systems reported adjusted EPS of $4.73 and revenue of $737.18M, beating consensus and marking the fifth consecutive earnings beat. Revenue rose 18.9% year over year and 10.9% sequentially, driven by Enterprise Data ($191.48M), Storage and Computing ($186.57M), and Automotive ($151.54M). Net income increased 23.4% to $178.27M and operating income rose 19.0% to $195.18M. GAAP gross margin expanded to 55.1%, reflecting pricing power and efficiency. Management guided Q4 revenue of $730M–$750M and gross margin of 54.9%–55.5%, indicating a sequential deceleration and modest seasonal cautiousness into year-end.

Read at 24/7 Wall St.