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Monolithic Power Systems, Inc. MPWR is set to report its fourth-quarter 2024 results on Feb. 6, after the closing bell. In the last reported quarter, the company delivered an earnings surprise of 2.53%. It pulled off a trailing four-quarter earnings surprise of 3.12%, on average.

Find the latest EPS estimates and surprises on Zacks Earnings Calendar.

This Kirkland, WA-based company is likely to report higher revenues year over year in the fourth quarter, driven by solid traction in several verticals. Management’s effort to expand and diversify its supply chain is a positive factor.

Factors at Play for MPWR

Monolithic Power is witnessing healthy demand trends in the automotive segment backed by its robust product portfolio that targets In-Car connectivity and infotainment, advanced driver assistance system. Its deep-rooted partnerships with leading auto suppliers will likely boost top line. Increasing demand for Wi-Fi, optical, networking and router solutions is a key growth driver for the Communications segment. Demand remains steady in the Enterprise Data segment. However, fierce competition in the analog integrated circuit market remains a major concern.

The consensus estimate for revenues from the Enterprise Data vertical is pegged at $190.28 million, implying solid growth from $128.9 million in the year-ago quarter. The Zacks Consensus Estimate for net sales in the Communication segment is pegged at $69.05 million, suggesting growth from $40.93 million in the year-ago quarter.

Contribution from the consumer vertical is expected to be $60.42 million, implying growth from $43.74 million reported in the year-ago quarter. The Zacks Consensus Estimate for net sales from the Industrial vertical is pegged at $43.58 million, suggesting an improvement from the $33.38 million reported in the prior-year quarter.

Revenues from the storage and computing vertical are expected to be $135.27 million, indicating growth from the prior-year quarter’s tally of $117.31 million. Net sales from the automotive vertical are pegged at $112.05 million, indicating an increase from $89.76 million reported in the year-ago quarter.

For the December quarter, the Zacks Consensus Estimate for revenues is pegged at $610.51 million, suggesting an increase from $454.01 million reported in the year-ago quarter. The consensus estimate for adjusted earnings per share is pegged at $4.01, implying growth from $2.88 reported in the prior-year quarter.

Earnings Whispers

Our proven model does not conclusively predict an earnings beat for Monolithic Power this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. That is not the case here.

Earnings ESP: Earnings ESP, which represents the difference between the Most Accurate Estimate and the Zacks Consensus Estimate, is 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Monolithic Power Systems, Inc. Price and EPS Surprise

Monolithic Power Systems, Inc. price-eps-surprise | Monolithic Power Systems, Inc. Quote

Zacks Rank: MPWR currently carries a Zacks Rank #4 (Sell).

Stocks to Consider

Here are some companies you may want to consider, as our model shows that these have the right combination of elements to post a beat this season:

The Earnings ESP for Qualcomm Technologies, Inc. QCOM is +3.34%, and it carries a Zacks Rank of 2 at present. The company is scheduled to report its quarterly numbers on Feb. 5. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Earnings ESP for Akamai Technologies, Inc. AKAM is +0.09%, and it carries a Zacks Rank of 2 at present. The company is scheduled to report its quarterly numbers on Feb. 20.

The Earnings ESP for Watts Water Technologies WTS is +0.40%, and it carries a Zacks Rank of 3 at present. The company is scheduled to report its quarterly numbers on Feb. 10.

Zacks Investment Research

In its upcoming report, Monolithic Power (MPWR) is predicted by Wall Street analysts to post quarterly earnings of $4.01 per share, reflecting an increase of 39.2% compared to the same period last year. Revenues are forecasted to be $610.51 million, representing a year-over-year increase of 34.5%.

Over the past 30 days, the consensus EPS estimate for the quarter has remained unchanged. This demonstrates the covering analysts' collective reassessment of their initial projections during this period.

Before a company announces its earnings, it is essential to take into account any changes made to earnings estimates. This is a valuable factor in predicting the potential reactions of investors toward the stock. Empirical research has consistently shown a strong correlation between trends in earnings estimate revisions and the short-term price performance of a stock.

While it's common for investors to rely on consensus earnings and revenue estimates for assessing how the business may have performed during the quarter, exploring analysts' forecasts for key metrics can yield valuable insights.

In light of this perspective, let's dive into the average estimates of certain Monolithic metrics that are commonly tracked and forecasted by Wall Street analysts.

The consensus estimate for 'Revenue- Storage and Computing' stands at $135.27 million. The estimate indicates a change of +15.3% from the prior-year quarter.

Analysts' assessment points toward 'Revenue- Communication' reaching $69.05 million. The estimate points to a change of +68.7% from the year-ago quarter.

The average prediction of analysts places 'Revenue- Automotive' at $112.05 million. The estimate suggests a change of +24.8% year over year.

Based on the collective assessment of analysts, 'Revenue- Enterprise Data' should arrive at $190.28 million. The estimate suggests a change of +47.6% year over year.

According to the collective judgment of analysts, 'Revenue- Industrial' should come in at $43.58 million. The estimate points to a change of +30.6% from the year-ago quarter.

The collective assessment of analysts points to an estimated 'Revenue- Consumer' of $60.42 million. The estimate points to a change of +38.1% from the year-ago quarter.

View all Key Company Metrics for Monolithic here>>>

Over the past month, Monolithic shares have recorded returns of +2.8% versus the Zacks S&P 500 composite's +2.7% change. Based on its Zacks Rank #4 (Sell), MPWR will likely underperform the overall market in the upcoming period. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here

Zacks Investment Research

About 25% of the companies in the S&P 500 have so far reported their earnings for the December quarter.

Collectively, they’ve recorded a 31% annualized increase in earnings.

Among names that are now scheduled to report their financial results next week, a handful have a history of beating Street estimates and seeing a positive response in terms of stock price action.

Two of them that look particularly attractive to own at writing are: Chipotle and Monolithic Power.

Let’s take a closer look at what each of these has in store for investors.

Chipotle Mexican Grill Inc

Chipotle is scheduled to report its fourth-quarter earnings on February 4th.

The consensus is for it to earn 24 cents on a per-share basis in its recently concluded quarter versus 21 cents per share a year ago.

The chain of fast-casual restaurants exceeds Street estimates more than 75% of the time and sees its stock price climb some 1.6% on average on the day after the release.

Heading into its Q4 report, analysts are bullish on Chipotle stock. RBC sees it rallying to $75 by the end of 2025.

Its price target indicates the potential for another 30% gain from current levels.

The investment firm has immense confidence in CMG’s ability to do fairly well irrespective of the macroeconomic backdrop.

Potential for operational efficiencies and international unit growth could help drive the company’s share price up this year, it told investors in a recent note.

Despite a 10% decline since its recent high, Chipotle stock is not, however, inexpensive to own currently.

It also doesn’t pay a dividend at the time of writing.

Chipotle stock is particularly attractive to own at writing as it’s currently down about 10% versus its recent high.

It does not, however, pay a dividend at the time of writing.

Monolithic Power Systems Inc

Another name that has a history of beating earnings estimates and tends to push up a day after is Kirkland-headquartered Monolithic Power.

The company that designs, develops, and markets power solutions for various electronic systems exceeds Street estimates more than 85% of the time and typically gains over 2.0% the next day.

MPWR has lost about 30% over the past three months which has made the risk-reward all the more favorable when it comes to investing in it.

Monolithic Power is scheduled to report its fiscal fourth-quarter results on February 6th.

The consensus is for it to earn $3.13 per share – significantly better than the $2.04 a share it earned in the same quarter last year.

Heading into its earnings release, Wall Street has a consensus “overweight” rating on Monolithic Power stock.

The Street-high price target of $1,100 indicates potential for an exciting 70% upside from current levels.

Unlike Chipotle, MPWR currently pays a dividend yield of 0.78% as well which makes it even more attractive for investors in search of an additional source of passive income.

Monolithic Power Systems is expected to see accelerated growth in 2025, driven by a recovery in non-AI segments and accelerating growth in its AI-heavy Enterprise Data segment, Oppenheimer said in a note emailed Friday.

The firm expects Enterprise Data growth to gain momentum through 2025, driven by increasing adoption among accelerator customers and expanding x86 CPU server market share.

Meanwhile, all five of Monolithic Power Systems' non-AI segments have recently inflected after a prolonged cyclical downturn, it added.

The semiconductor company is expected to retain a 50% market share at Nvidia this year, contributing $200 million to revenue, compared with last year's about 100% share and $400 million in revenue, as newly-qualified Nvidia supplier Infineon has come into the picture, Oppenheimer said.

Investors will be keenly awaiting any announcement regarding the company's remaining share repurchase authorization, the firm said.

Oppenheimer reiterated its outperform rating on the company's stock and expects a bullish update at the company's March 20 analyst day. However, the firm lowered its price target to $800 from $900, citing broader market multiple compression.