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Monolithic Power's Q1 Earnings Beat Estimates, Revenues Rise Y/Y
MPWRMPS(MPWR) ZACKS·2025-05-02 16:05

Core Insights - Monolithic Power Systems, Inc. (MPWR) reported strong first-quarter 2025 results, with adjusted earnings and revenues exceeding the Zacks Consensus Estimate [1] Financial Performance - Net income on a GAAP basis was 133.8millionor133.8 million or 2.79 per share, up from 92.5millionor92.5 million or 1.89 per share year-over-year, driven by top-line growth [3] - Non-GAAP net income increased to 193.8millionor193.8 million or 4.04 per share from 137.5millionor137.5 million or 2.81 per share in the prior-year quarter, surpassing the Zacks Consensus Estimate by 4 cents [3] - Revenues reached 637.6million,a39.2637.6 million, a 39.2% increase from 457.9 million in the year-ago quarter, beating the Zacks Consensus Estimate of 635million[4]RevenueBreakdownbyEndMarkets−StorageandComputingrevenueswere635 million [4] Revenue Breakdown by End Markets - Storage and Computing revenues were 188.5 million, up 77.7% year-over-year, driven by strong demand for memory and notebook solutions, exceeding the Zacks Consensus Estimate of 177.57million[5]−Automotiverevenuescontributed177.57 million [5] - Automotive revenues contributed 144.9 million, compared to 87.1millionintheyear−agoquarter,thoughitmissedtheZacksConsensusEstimateof87.1 million in the year-ago quarter, though it missed the Zacks Consensus Estimate of 148.34 million [6] - Industrial revenues increased to 42.6millionfrom42.6 million from 30.2 million year-over-year, slightly beating the Zacks Consensus Estimate of 42.16million[6]−Communicationsendmarketrevenueswere42.16 million [6] - Communications end market revenues were 71.7 million, up from 46.7millionyear−over−year,butfellshortoftheZacksConsensusEstimateof46.7 million year-over-year, but fell short of the Zacks Consensus Estimate of 73.27 million [7] - Consumer end market revenues improved to 56.9millionfrom56.9 million from 38.1 million year-over-year, missing the Zacks Consensus Estimate of 58.92millionduetolowergamingrevenues[7]OperationalMetrics−Non−GAAPgrossmarginremainedstableat55.758.92 million due to lower gaming revenues [7] Operational Metrics - Non-GAAP gross margin remained stable at 55.7%, while non-GAAP operating expenses rose to 133.5 million from 103.4millionintheprior−yearperiod[8]−Non−GAAPoperatingincomeincreasedto103.4 million in the prior-year period [8] - Non-GAAP operating income increased to 221.5 million from 151.6millionyear−over−year[8]CashFlowandLiquidity−Operatingcashflowforthequarterwas151.6 million year-over-year [8] Cash Flow and Liquidity - Operating cash flow for the quarter was 256.4 million, compared to 248millionintheprior−yearquarter[10]−AsofMarch31,2025,cashandcashequivalentstotaled248 million in the prior-year quarter [10] - As of March 31, 2025, cash and cash equivalents totaled 637.4 million, with 105.8millioninotherlong−termliabilities[10]FutureOutlook−ForQ22025,thecompanyestimatesrevenuesbetween105.8 million in other long-term liabilities [10] Future Outlook - For Q2 2025, the company estimates revenues between 640 million and 660million,withnon−GAAPgrossmarginexpectedtobebetween55.2660 million, with non-GAAP gross margin expected to be between 55.2% and 55.8% [11] - GAAP gross margin is anticipated to be in the range of 54.9% to 55.5%, with GAAP operating expenses projected between 189.0 million and $195.0 million [11]