Overview

* Monolithic Power ( MPWR ) Q3 revenue grows 18.9% yr/yr, beating analyst expectations

* Company reports higher GAAP and non-GAAP net income compared to last year

* Company's gross margin slightly decreases compared to last year

Outlook

* Company expects Q4 revenue between $730 mln and $750 mln

* MPS projects Q4 GAAP gross margin of 54.9% to 55.5%

* Company anticipates Q4 non-GAAP operating expenses of $145.5 mln to $149.5 mln

Result Drivers

* TRANSFORMATION SUCCESS - CEO Michael Hsing attributes revenue growth to company's shift from chip-only supplier to full-service solutions provider

* AUTOMOTIVE SECTOR GROWTH - Automotive revenue increased significantly, contributing to overall revenue growth

* END MARKET PERFORMANCE - Revenue growth driven by increases in storage and computing, automotive, and communications sectors

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q3 Beat $737.20 $722.25

Revenue mln mln (16

Analysts

)

Q3 Gross 55.10%

Margin

Q3 55.50%

Adjusted

Gross

Margin

Q3 $260.60

Adjusted mln

Operatin

g Income

Q3 $211 mln

Operatin

g

Expenses

Q3 $195.20

Operatin mln

g Income

Q3 $205.60

Pretax mln

Profit

Analyst Coverage

* The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 15 "strong buy" or "buy", 4 "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 ( MPWR ) is $1,100.00, about 0.5% above its October 29 closing price of $1,094.08

Press Release:

For questions concerning the data in this report, contact [email protected]. For any other questions or feedback, contact .

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)