Power Integrations (POWI) Q3 Earnings: What To Expect

Semiconductor designer Power Integrations (NASDAQ:POWI) will be announcing earnings results this Wednesday morning. Here’s what you need to know.

Power Integrations beat analysts’ revenue expectations by 0.8% last quarter, reporting revenues of $115.9 million, up 9.1% year on year. It was a mixed quarter for the company, with a significant improvement in its inventory levels but revenue guidance for next quarter missing analysts’ expectations significantly.

Is Power Integrations a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.

This quarter, analysts are expecting Power Integrations’s revenue to grow 2.2% year on year to $118.4 million, a reversal from the 7.7% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.35 per share.

Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Power Integrations has missed Wall Street’s revenue estimates twice over the last two years.

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 posted flat year-on-year revenue, beating analysts’ expectations by 3.6%, and Monolithic Power Systems reported revenues up 18.9%, topping estimates by 2%. Impinj traded down 15% following the results while Monolithic Power Systems was also down 7.5%.

Read our full analysis of Impinj’s results here and Monolithic Power Systems’s results here.

There has been positive sentiment among investors in the analog semiconductors segment, with share prices up 3.4% on average over the last month. Power Integrations is up 7% during the same time and is heading into earnings with an average analyst price target of $60.80 (compared to the current share price of $41.76).

The biggest winners—Microsoft, Alphabet, Coca-Cola, Monster Beverage—were all riding powerful megatrends before Wall Street caught on. We’ve just identified an under-the-radar profitable growth stock positioned at the center of the AI boom. Get it FREE here before the crowd discovers it. GO HERE NOW.

StockStory is growing and hiring equity analyst and marketing roles. Are you a 0 to 1 builder passionate about the markets and AI? See the open roles here.