Monolithic Power Systems stock pops 10% on strong earnings and guidance

Monolithic Power Systems Inc (NASDAQ:MPWR) saw its stock soar approximately 10% premarket trading Friday after reporting fourth-quarter earnings that beat analyst expectations and provided strong guidance for the current quarter.

The power management solutions provider reported adjusted earnings per share of $4.09, surpassing the analyst consensus of $3.98. Revenue for the quarter came in at $621.7 million, exceeding estimates of $608.09 million and representing a 36.9% increase YoY.

For the first quarter of 2025, Monolithic Power Systems forecasts revenue between $610 million and $630 million, well above the consensus estimate of $584.38 million.

"We believe today’s results are a reflection of the steady, effective strategy that has guided the company to consistently outperform the broader analog industry, with MPWR
bolstered by one of the most well-rounded and diverse suite of power solutions in semis, in our view," Stifel analysts commented in a post-earnings note.

They reiterated a Buy rating and the $1,100 price target on MPWR shares. 

The company's performance was driven by strong growth across multiple segments. Enterprise Data revenue surged 51.2% YoY to $194.9 million, while Automotive revenue jumped 43% YoY to $128.4 million.

"Our proven, long-term growth strategy remains intact as we continue our transformation from being a chip-only, semiconductor supplier to a full service, silicon-based solutions provider," said Michael Hsing, CEO and founder of MPS.

For the full year 2024, Monolithic Power Systems achieved record revenue of $2.2 billion, marking a 21.2% increase YoY and its 13th consecutive year of revenue growth.

The company also announced a 25% increase in its quarterly dividend to $1.56 per share and authorized a new $500 million stock repurchase program over the next three years.