NASDAQ$MPWR

Monolithic Power Systems Inc · Q4 2020 earnings

Q4 2020 earnings · · Investor relations

Briefing

Monolithic Power Systems reported an increase in revenue and net income for Q4 2020.

Monolithic Power Systems (MPS) announced financial results for the quarter and year ended December 31, 2020. Revenue for Q4 2020 was $233.0 million, a 39.8% increase compared to Q4 2019. GAAP net income was $42.9 million, or $0.90 per diluted share, compared to $32.4 million, or $0.70 per diluted share, for Q4 2019.

  • Revenue was $233.0 million, up 39.8% year-over-year.
  • GAAP gross margin was 55.3%, compared to 55.1% for the same quarter last year.
  • GAAP operating income was $40.0 million, compared to $30.7 million for the same quarter last year.
  • GAAP net income was $42.9 million, or $0.90 per diluted share, compared to $32.4 million, or $0.70 per diluted share, for the same quarter last year.

Headline financials

Total Revenue

$233M

Previous: $167M+39.8%
EPS (adj)

$1.31

Previous: $1.04+26.0%
GAAP Gross Margin

55.3%

Previous: 55.1%+0.4%
Capital Expenditures

$11.5M

Previous: $8.68M+32.3%
Free Cash Flow

$68.2M

Previous: $52.3M+30.3%
Net Income

$42.9M

Previous: $32.4M+32.4%
Operating Income

$40M

Previous: $30.7M+30.3%
Gross Profit

$129M

Previous: $91.9M+40.2%
Cash & Equivalents

$335M

Previous: $173M+93.7%
Total Assets

$1.21B

Previous: $956M+26.4%
Stock-Based Comp

$23M

Previous: $18.7M+23.0%

Revenue & EPS history

Monolithic Power · Revenue · Quarterly

$233M

Q4 2020+39.8%vs Q4 2019
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

MPS provided financial targets for the first quarter ending March 31, 2021, including revenue in the range of $236 million to $248 million and GAAP gross margin between 55.1% and 55.7%.

Tailwinds

  • Revenue in the range of $236 million to $248 million.
  • GAAP gross margin between 55.1% and 55.7%.
  • Non-GAAP gross margin between 55.4% and 56.0%, which excludes an estimated impact of stock-based compensation expenses of 0.3%.
  • GAAP research and development (“R&D”) and selling, general and administrative (“SG&A”) expenses between $89.0 million and $93.0 million.
  • Interest income of $1.4 million to $1.8 million.

Headwinds

  • Non-GAAP R&D and SG&A expenses between $62.8 million and $64.8 million, which excludes estimated stock-based compensation expenses in the range of $26.2 million to $28.2 million.
  • Total stock-based compensation expense of $27.0 million to $29.0 million.
  • Litigation expenses ranging between $2.3 million and $2.7 million.
  • Fully diluted shares outstanding between 47.3 million and 48.3 million.
  • Potential impact of COVID-19 on the global economy and business.

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 Q4 2020

Historical avgQ4 2020

+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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