The corporate reporting period has is going.
Last week, 170 companies from the S&P 500 index reported.
Today we will analyze Monolithic Power Systems. Its revenue is $620M. It grew by +7.7% compared to the corresponding value for the previous quarter and exceeded analysts’ expectations by +3.3%. Let’s analyze the company’s business in more detail.
Monolithic Power Systems is a supplier of chips for computers, displays, navigation systems, and other electronic devices. The company mainly serves the automotive industry, telecommunications infrastructure, and industrial equipment manufacturers.
Monolithic Power Systems’ revenues increased by +30.8% year-on-year. The company is developing the automotive segment with an average annual growth rate of +43%, mainly due to driver assistance systems and battery management. Monolithic Power Systems also has a proprietary approach to chip development, integrating multiple functions in a single chip to achieve a smaller form factor and greater energy efficiency.
44% of the revenue structure is made up of manufacturing costs, and 56% is gross profit. Over the past quarter, the company earned a profit of $144M. And its market capitalization is $37B.
Despite the positive financial results, after the publication of the report, shares of Monolithic Power Systems Kkr & Co fell by -17.4% to $759 per share. In general, market participants are dissatisfied with the company’s current financial results and reacted negatively to the forecasts for the next quarter.
*surprise – % ratio between actual and expected revenue
**growth – % ratio of the amount of revenue for the last 4 quarters compared to this value calculated for the previous quarter
