NASDAQ$MPWR

Monolithic Power Systems Inc · Q2 2021 earnings

Q2 2021 earnings · · Investor relations

Briefing

Monolithic Power Systems' financial results announced for Q2 2021, demonstrating strong revenue growth and improved profitability.

Monolithic Power Systems reported a strong second quarter in 2021, with revenue reaching $293.3 million, a 57.5% increase compared to the same quarter last year. GAAP net income was $55.2 million, or $1.16 per diluted share, up from $30.2 million, or $0.64 per diluted share, in Q2 2020.

  • Revenue increased by 57.5% year-over-year, reaching $293.3 million.
  • GAAP gross margin improved to 56.0% compared to 55.1% in the same quarter last year.
  • GAAP operating income significantly increased to $60.6 million from $28.0 million year-over-year.
  • GAAP net income rose to $55.2 million, or $1.16 per diluted share, compared to $30.2 million, or $0.64 per diluted share, in the prior year.

Headline financials

Total Revenue

$293M

Previous: $186M+57.5%
EPS (adj)

$1.81

Previous: $1.08+67.6%
GAAP Gross Margin

56.0%

Previous: 55.1%+1.6%
Capital Expenditures

-$58.3M

Previous: -$24.5M-137.5%
Free Cash Flow

-$3.1M

Previous: $5.63M-155.0%
Net Income

$55.2M

Previous: $30.2M+82.9%
Operating Income

$60.6M

Previous: $28M+116.9%
Gross Profit

$164M

Previous: $103M+60.1%
Cash & Equivalents

$220M

Previous: $156M+40.7%
Total Assets

$1.37B

Previous: $1.07B+28.2%
Stock-Based Comp

$32.1M

Previous: $21M+52.7%

Revenue & EPS history

Monolithic Power · Revenue · Quarterly

$293M

Q2 2021+57.5%vs Q2 2020
Beat estimate in 15 of 16 quarters(94%)
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

For the third quarter ending September 30, 2021, MPS expects revenue in the range of $309 million to $321 million and GAAP gross margin to be in the range of 57.3% to 57.9%, including a one-time benefit from a litigation settlement.

Tailwinds

  • Revenue is projected to be between $309 million and $321 million.
  • GAAP gross margin is expected to be in the range of 57.3% to 57.9%, including a one-time benefit.
  • Non-GAAP gross margin is expected to be in the range of 57.6% to 58.2%, including a one-time benefit.
  • Interest income is projected to be $1.0 million to $1.4 million.
  • The company is well positioned to accelerate future revenue growth with planned capacity expansion and new parts released into production.

Headwinds

  • GAAP R&D and SG&A expenses are projected to be between $104.1 million and $108.1 million.
  • Litigation expenses are expected to range between $2.3 million and $2.7 million.
  • Total stock-based compensation expense is expected to be $31.2 million to $33.2 million.
  • Fully diluted shares outstanding are expected to be between 47.4 million and 48.4 million.
  • Non-GAAP R&D and SG&A expenses are projected to be between $73.9 million and $75.9 million, excluding stock-based compensation.

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 Q2 2021

Historical avgQ2 2021

+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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