Semiconductor designer Power Integrations (NASDAQ: POWI) will be reporting earnings this Wednesday after the bell. Here’s what to expect.
Power Integrations beat analysts’ revenue expectations last quarter, reporting revenues of $118.9 million, up 2.7% year on year. It was a very strong quarter for the company, with a beat of analysts’ EPS estimates and a solid beat of analysts’ operating income estimates.
Is Power Integrations a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting Power Integrations’s revenue to grow 6% year on year, improving from the 2.7% increase it recorded in the same quarter last year.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings. Power Integrations has a history of exceeding Wall Street’s expectations.
Looking at Power Integrations’s peers in the analog semiconductors segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Impinj delivered year-on-year revenue growth of 16.7%, beating analysts’ expectations by 4.4%, and Monolithic Power Systems reported revenues up 63.1%, topping estimates by 3.4%. Impinj traded up 3.4% following the results while Monolithic Power Systems’s stock price was unchanged.
Read our full analysis of Impinj’s results here and Monolithic Power Systems’s results here.
Over the past year, investors have repeatedly shifted their focus from one macro narrative to another (AI disruption and AI capex spending to geopolitics, interest rates, and the broader health of the economy). Unfortunately, analog semiconductors stocks have struggled in this environment as share prices are down 20.2% on average over the last month. Power Integrations is down 17.5% during the same time and is heading into earnings with an average analyst price target of $71.75 (compared to the current share price of $44.87).
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