Monolithic Power Systems shares jumped Friday after the chipmaker crushed Wall Street's targets for the fourth quarter and guided much higher for the current period. MPWR stock rose more than 4% on the news.
The Kirkland, Wash.-based company late Thursday said it earned an adjusted $2.12 a share on sales of $336.5 million in the December quarter. Analysts had expected Monolithic earnings of $1.88 a share on sales of $321.3 million, according to FactSet. On a year-over-year basis, Monolithic earnings jumped 62% while sales climbed 44%.
For the first quarter, the chipmaker expects revenue of $354 million to $366 million. The midpoint of $360 million is well above Wall Street's target of $322 million for the March quarter.
Monolithic Power Systems also raised its quarterly cash dividend 25% to 75 cents a share.
MPWR Stock Rises After Report
On the stock market today, MPWR stock rose 4.2% to close at 424.29. During the regular session Thursday, MPWR stock fell 3.7% to 407.29.
Monolithic Power Systems makes high-performance, semiconductor-based power electronics systems.
"MPS's strong financial performance in 2021 was largely due to a 40% increase in fab and assembly capacity, which supported our high-value, greenfield-product revenue ramp," Chief Executive Michael Hsing said in a news release.
He added, "Looking ahead, MPS is on track to expand capacity in 2022 well beyond $2 billion, allowing the company to successfully ramp new product revenue and achieve strategic market share gains in 2023, 2024 and beyond."
Fourth-Quarter Report Called 'Eye-Popping'
Needham analyst Quinn Bolton upgraded MPWR stock to buy from hold and set a price target of 530.
In a note to clients, he called Monolithic's fourth-quarter report "eye-popping" and "impressive."
"We think that MPWR has strategically created a business model for sustainable success and growth in its key markets," Bolton said.
Rosenblatt Securities analyst Hans Mosesmann reiterated his buy rating on MPWR stock with a price target of 620.
"Monolithic Power is at the center of a stronger power silicon cycle that is being driven by fundamental shifts in data center AI-centric architectures, 5G, and automotive that are moving to more sophisticated, dense, and efficient power solutions that are MPS' expertise," he said in a note to clients.
MPWR stock ranks No. 17 out of 31 stocks in IBD's fabless semiconductor industry group, according to IBD Stock Checkup. It has an IBD Composite Rating of 80 out of 99. IBD's Composite Rating is a blend of key fundamental and technical metrics to help investors gauge a stock's strengths. The best growth stocks have a Composite Rating of 90 or better.
MPWR stock is in the IBD Long-Term Leaders Portfolio.
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