NASDAQ$MPWR

Monolithic Power Systems Inc · Q4 2021 earnings

Q4 2021 earnings · · Investor relations

Briefing

Monolithic Power Systems reported strong growth in revenue and earnings for Q4 2021, driven by increased capacity and new product ramps.

Monolithic Power Systems (MPS) announced its Q4 and full-year 2021 financial results, demonstrating significant revenue and earnings growth. Q4 revenue reached $336.5 million, a 44.4% increase year-over-year, while GAAP net income was $72.7 million, or $1.51 per diluted share. The company's performance was supported by a 40% increase in fab and assembly capacity.

  • Revenue for Q4 2021 was $336.5 million, up 44.4% year-over-year.
  • GAAP gross margin for Q4 2021 was 57.6%, compared to 55.3% in Q4 2020.
  • GAAP net income for Q4 2021 was $72.7 million, or $1.51 per diluted share, compared to $42.9 million, or $0.90 per diluted share, in Q4 2020.
  • The board of directors approved an increase in the quarterly cash dividend from $0.60 per share to $0.75 per share.

Headline financials

Total Revenue

$337M

Previous: $233M+44.4%
EPS (adj)

$2.12

Previous: $1.31+61.8%
GAAP Gross Margin

57.6%

Previous: 55.3%+4.2%
Capital Expenditures

$17.6M

Previous: $11.5M+53.3%
Free Cash Flow

$10.6M

Previous: $68.2M-84.4%
Net Income

$72.7M

Previous: $42.9M+69.5%
Operating Income

$78.6M

Previous: $40M+96.5%
Gross Profit

$194M

Previous: $129M+50.6%
Cash & Equivalents

$189M

Previous: $335M-43.5%
Total Assets

$1.59B

Previous: $1.21B+31.2%
Stock-Based Comp

$31.2M

Previous: $23M+35.8%

Revenue & EPS history

Monolithic Power · Revenue · Quarterly

$337M

Q4 2021+44.4%vs Q4 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 first quarter ending March 31, 2022, MPS projects revenue between $354.0 million and $366.0 million and GAAP gross margin between 57.4% and 58.0%.

Tailwinds

  • Revenue in the range of $354.0 million to $366.0 million.
  • GAAP gross margin between 57.4% and 58.0%.
  • Non-GAAP gross margin between 57.7% and 58.3%, excluding stock-based compensation expenses.
  • Interest income of $1.0 million to $1.4 million.
  • Fully diluted shares outstanding between 47.8 million and 48.8 million.

Headwinds

  • GAAP research and development and selling, general and administrative expenses between $119.2 million and $123.2 million.
  • Non-GAAP R&D and SG&A expenses between $83.4 million and $85.4 million, excluding stock-based compensation expenses.
  • Total stock-based compensation expense of $36.9 million to $38.9 million.
  • Litigation expense of $2.3 million to $2.7 million.
  • Potential impact of stock-based compensation expenses on gross margin and R&D and SG&A expenses.

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 2021

Historical avgQ4 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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