Monolithic Power stock powers down more than 10% on disappointing outlook

Monolithic Power Systems Inc. (MPWR) shares fell in the extended session Thursday after the chip-based electronics component maker appeared to follow in the footsteps of many semiconductor-related company this earnings season and reported a slight beat on earnings and a disappointing outlook for the current quarter. Monolithic shares dropped nearly 11% after hours, adding to a 1.5% decline in the regular session to close at $458.93. The company forecast second-quarter revenue between $430 million and $450 million, while analysts had estimated revenue of $455.4 million. Kirkland, Wash.-based Monolithic reported first-quarter net income of $109.8 million, or $2.26 a share, compared with $79.6 million, or $1.65 a share, in the year-ago period. Adjusted earnings, which exclude stock-based compensation expenses and other items, were $3 a share, compared with $2.45 a share in the year-ago period. Revenue rose to $451.1 million from $377.7 million in the year-ago quarter, as sales to auto makers more than doubled to $105.3 million from the year-ago quarter. Analysts surveyed by FactSet had forecast $2.98 a share on revenue of $450.3 million, expecting $101.1 million of that from auto sales. Chip sales to auto makers appear to be one strong spot this earnings season. Late Monday, auto chip supplier NXP Semiconductor NV (NXPI) topped Wall Street expectations, and shares rallied Tuesday, while last week, another big supplier to the auto market, Texas Instruments Inc. (TXN) said that sales to the auto industry remained strong.

-Wallace Witkowski

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05-04-23 1800ET

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