NASDAQ$MPWR

Monolithic Power Systems Inc · Q1 2023 earnings

Q1 2023 earnings · · Investor relations

Briefing

Monolithic Power Systems reported earnings for Q1 2023, with revenue increasing year-over-year but decreasing from the previous quarter. The company's GAAP and non-GAAP profitability metrics showed improvement compared to the previous year.

Monolithic Power Systems (MPS) announced its Q1 2023 financial results, revealing a 19.4% increase in revenue compared to Q1 2022, reaching $451.1 million, but a slight decrease compared to the previous quarter. GAAP net income increased to $109.8 million or $2.26 per diluted share, compared to $79.6 million or $1.65 per diluted share for the same period last year. The company remains cautious about near-term business conditions but is focused on long-term growth.

  • Revenue for Q1 2023 was $451.1 million, up 19.4% year-over-year but down 1.9% from the previous quarter.
  • GAAP gross margin was 57.4% compared to 57.9% for the quarter ended March 31, 2022.
  • GAAP operating income increased to $124.3 million, compared to $96.1 million for the same quarter last year.
  • GAAP net income was $109.8 million, or $2.26 per diluted share, compared to $79.6 million, or $1.65 per diluted share, for the same quarter last year.

Headline financials

Total Revenue

$451M

Previous: $378M+19.4%
EPS (adj)

$3.00

Previous: $2.45+22.4%
GAAP Gross Margin

57.4%

Previous: 57.9%-0.9%
Capital Expenditures

-$8.85M

Previous: -$26.9M+67.1%
Free Cash Flow

$101M

Previous: $52.7M+91.6%
Net Income

$110M

Previous: $79.6M+38.0%
Operating Income

$124M

Previous: $96.1M+29.3%
Gross Profit

$259M

Previous: $219M+18.2%
Cash & Equivalents

$488M

Previous: $382M+27.8%
Total Assets

$2.78B

Previous: $2.3B+20.9%
Stock-Based Comp

$37M

Previous: $39.8M-7.0%

Revenue & EPS history

Monolithic Power · Revenue · Quarterly

$451M

Q1 2023+19.4%vs Q1 2022
Beat estimate in 12 of 15 quarters(80%)
ActualEstimate

Revenue by segment

Monolithic Power · $240M total across 4 segments · Q4 2022

  • Automotive
    $110M
  • Industrial
    $78.2M
  • Consumer
    $29.7M
  • Communications
    $22.4M

Forward guidance

MPS anticipates revenue between $430.0 million and $450.0 million for the second quarter ending June 30, 2023, with a GAAP gross margin between 55.9% and 56.5%.

Tailwinds

  • Revenue is expected to be in the range of $430.0 million to $450.0 million.
  • GAAP gross margin is projected to be between 55.9% and 56.5%.
  • Non-GAAP gross margin is expected to be between 56.2% and 56.8%, excluding stock-based compensation expenses.
  • Interest and other income is projected to be $3.8 million to $4.2 million.
  • Fully diluted shares outstanding are expected to be between 48.6 million and 49.0 million.

Headwinds

  • The company remains cautious about near-term business conditions.
  • Stock-based compensation expenses are estimated to be between $37.6 million and $39.6 million.
  • GAAP research and development and selling, general and administrative expenses are projected to be between $132.5 million and $136.5 million.
  • Non-GAAP R&D and SG&A expenses are projected to be between $94.9 million and $96.9 million, excluding stock-based compensation expenses.
  • Total stock-based compensation expenses are projected to be $38.8 million to $40.8 million.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2023

Historical avgQ1 2023

+2.3%

Avg return

Earnings day

+2.0%

Avg return

5 days after

+2.3%

Avg return

30 days after

71%

47 / 66 earnings

Positive

+16.6%

Q1 2022

Best reaction

-18.6%

Q3 2024

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+1.5%+2.4%-3.1%
Q4 2025+6.4%+3.5%-11.5%
Q3 2025-7.7%-8.0%-14.7%
Q2 2025-3.4%-3.2%+2.1%
Q1 2025+5.6%+5.8%+10.0%
Q4 2024+9.0%+5.8%-9.7%
Q3 2024-18.6%-17.9%-39.2%
Q2 2024-7.8%-8.4%+8.3%
Q1 2024+6.5%+9.5%+9.9%
Q4 2023+16.4%+15.3%+15.7%
Q3 2023+8.8%+21.4%+36.1%
Q2 2023+0.9%-1.6%-5.6%
Q1 2023-11.8%-13.9%+6.7%
Q4 2022+9.2%+7.2%+2.4%
Q3 2022+4.0%+4.7%+10.8%
Q2 2022+8.8%+14.5%-2.5%
Q1 2022+16.6%+13.4%+14.3%
Q4 2021+0.4%+13.4%-6.4%
Q3 2021+0.1%+2.1%+1.9%
Q2 2021+4.4%+8.8%+18.0%
Q1 2021-3.6%-2.1%-4.1%
Q4 2020-1.8%+3.6%-9.0%
Q3 2020+5.2%+3.5%+8.0%
Q2 2020+3.9%+4.4%+4.0%
Q1 2020+5.0%-2.5%+5.8%
Q4 2019-0.4%+0.9%-9.1%
Q3 2019+3.6%+4.8%+9.0%
Q2 2019-0.8%-5.7%-0.2%
Q1 2019-6.1%-10.3%-24.6%
Q4 2018+2.8%+6.0%+5.6%
Q3 2018+8.1%+10.7%+19.4%
Q2 2018-1.0%-4.7%+7.1%
Q1 2018-1.0%+3.0%+11.3%
Q4 2017+0.1%-0.0%+13.5%
Q3 2017+6.0%+6.7%+10.0%
Q2 2017-0.3%-2.5%-7.1%
Q1 2017-1.8%-4.5%+1.9%
Q4 2016-1.7%-5.3%-0.7%
Q3 2016-1.9%-1.6%+5.2%
Q2 2016+2.4%+0.9%+4.1%
Q1 2016+3.3%
Q4 2015+3.0%
Q3 2015+5.0%
Q2 2015+3.0%
Q1 2015-0.8%
Q4 2014-2.1%
Q3 2014+5.0%
Q2 2014+2.3%
Q1 2014+1.4%
Q4 2013+8.4%
Q3 2013+15.1%
Q2 2013+8.7%
Q1 2013+4.6%
Q1 2011+1.5%
Q4 2012+1.5%
Q3 2012-2.2%
Q2 2012+4.6%
Q1 2012+4.5%
Q4 2009+2.6%
Q4 2011+2.6%
Q3 2010+3.7%
Q3 2011+3.7%
Q4 2010+1.1%
Q2 2010+1.1%
Q2 2011+1.1%
Q1 2010+1.2%

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