Chipmaker Monolithic Power Systems late Monday topped Wall Street's estimates for the first quarter and guided much higher for the second quarter. MPWR stock leapt in extended trading.
The Kirkland, Wash.-based company earned an adjusted $2.45 a share on sales of $377.7 million in the March quarter. Analysts polled by FactSet expected Monolithic earnings of $2.26 a share on sales of $360.5 million. On a year-over-year basis, Monolithic earnings jumped 68% while sales increased 48%.
The company's adjusted gross profit margin increased to 58.3% in the first quarter. It was 55.8% in the year-earlier quarter.
For the second quarter, Monolithic forecast revenue of $420 million to $440 million. The midpoint of $430 million is well above Wall Street analysts' target of $378 million. Monolithic predicted an adjusted gross margin of 58.7% to 59.3% in the June quarter.
MPWR Stock Rises Late
In after-hours trading on the stock market today, MPWR stock jumped 7.1% to 439.99. During the regular session Monday, MPWR stock advanced 4.8% to close at 410.87.
Monolithic Power Systems makes chips for high-performance, semiconductor-based power electronics systems.
Of the company's six end markets, storage and computing was the largest at $96.6 million in first-quarter sales, up 88% from the year-ago period.
Consumer devices was the second largest at $80 million, up 21%.
Sales in the communications end market rose 54% to $55.6 million. Automotive product sales increased 22% to $54.5 million. Industrial sales climbed 22% to $48.5 million.
And the company's smallest end market, enterprise data, saw sales leap 163% to $42.5 million.
MPWR Stock Is Long-Term Leader
MPWR stock ranks fifth out of 30 stocks in IBD's fabless chipmaker industry group, according to IBD Stock Checkup. It has an IBD Composite Rating of 82 out of 99. IBD's Composite Rating combines five separate proprietary ratings into one easy-to-use rating. The best growth stocks have a Composite Rating of 90 or better.
MPWR stock is in the IBD Long-Term Leaders Portfolio.
Follow Patrick Seitz on Twitter at @IBD_PSeitz for more stories on consumer technology, software and semiconductor stocks.
