NASDAQ$MPWR

Monolithic Power Systems Inc · Q4 2022 earnings

Q4 2022 earnings · · Investor relations

Briefing

Monolithic Power Systems reported an increase in revenue compared to the same quarter last year.

Monolithic Power Systems (MPS) announced its financial results for the fourth quarter and year ended December 31, 2022. The company reported revenue of $460.0 million for the quarter, a 36.7% increase compared to the same quarter last year. GAAP net income was $119.1 million, or $2.45 per diluted share, while non-GAAP net income was $154.0 million, or $3.17 per diluted share. The Board of Directors approved an increase in the quarterly cash dividend from $0.75 per share to $1.00 per share.

  • Revenue for Q4 2022 was $460.0 million, a 36.7% increase year-over-year.
  • GAAP gross margin for Q4 2022 was 58.2%, compared to 57.6% for Q4 2021.
  • GAAP net income for Q4 2022 was $119.1 million, or $2.45 per diluted share, compared to $72.7 million, or $1.51 per diluted share for Q4 2021.
  • Non-GAAP net income for Q4 2022 was $154.0 million, or $3.17 per diluted share, compared to $102.1 million, or $2.12 per diluted share for Q4 2021.

Headline financials

Total Revenue

$460M

Previous: $337M+36.7%
EPS (adj)

$3.17

Previous: $2.12+49.5%
GAAP Gross Margin

58.2%

Previous: 57.6%+1.0%
Capital Expenditures

$12.8M

Previous: $17.6M-27.0%
Free Cash Flow

$39.4M

Previous: $10.6M+271.0%
Net Income

$119M

Previous: $72.7M+63.8%
Operating Income

$137M

Previous: $78.6M+74.2%
Gross Profit

$268M

Previous: $194M+38.0%
Cash & Equivalents

$682M

Previous: $189M+260.2%
Total Assets

$2.06B

Previous: $1.59B+29.8%
Stock-Based Comp

$35.3M

Previous: $31.2M+13.1%

Revenue & EPS history

Monolithic Power · Revenue · Quarterly

$460M

Q4 2022+36.7%vs Q4 2021
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 expects revenue in the range of $440.0 million to $460.0 million for the first quarter ending March 31, 2023. They also anticipate GAAP gross margin between 57.4% and 58.0% and non-GAAP gross margin between 57.7% and 58.3%.

Tailwinds

  • Revenue in the range of $440.0 million to $460.0 million.
  • GAAP gross margin between 57.4% and 58.0%.
  • Non-GAAP gross margin between 57.7% and 58.3%.
  • Interest income of $1.8 million to $2.2 million.
  • The non-GAAP tax rate for the first quarter ending March 31, 2023 will be 12.5%.

Headwinds

  • GAAP research and development and selling, general and administrative expenses, including estimated litigation expenses, between $135.1 million and $139.1 million.
  • Non-GAAP R&D and SG&A expenses between $96.1 million and $98.1 million, which excludes estimated stock-based compensation expenses in the range of $39.0 million to $41.0 million but includes estimated litigation expenses.
  • Total stock-based compensation expenses of $40.2 million to $42.2 million.
  • Fully diluted shares outstanding between 48.2 million and 49.2 million.
  • Cautious about near-term business conditions.

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 2022

Historical avgQ4 2022

+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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