Monolithic Power Q1 earnings beat estimates on rise in rev from Enterprise Data end market

Overview

• US semiconductor power solutions firm's Q1 revenue rose 26% yr/yr, beating analyst expectations

• Adjusted EPS for Q1 beat analyst expectations

• Company cites strong growth in communications and enterprise data end markets

Outlook

• Company expects Q2 2026 revenue between $890 mln and $910 mln

• Company sees Q2 2026 non-GAAP gross margin of 55.3% to 55.9%

• Company continues to expand capacity and diversify supply chain to capture future growth opportunities

Result Drivers

• COMMUNICATIONS GROWTH - Higher sales of power solutions for optical modules and switches drove a 33% sequential increase in communications revenue

• ENTERPRISE DATA DEMAND - Increased sales of power management solutions for AI and server applications sequentially boosted enterprise data revenue

• PROJECT PIPELINE - Multiple new project wins in automotive and enterprise data contributed to revenue growth

Company press release: ID:nGNXz6fPY

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 17 "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the semiconductors peer group is "buy"

• Wall Street's median 12-month price target for Monolithic Power Systems Inc is $1,396.00, about 8.6% below its April 29 closing price of $1,526.84

• The stock recently traded at 66 times the next 12-month earnings vs. a P/E of 44 three months ago

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