Will Higher Revenues Boost Monolithic Power's Q4 Earnings?

Monolithic Power Systems, Inc. MPWR is set to release fourth-quarter 2025 results on Feb. 5, after the closing bell. In the last reported quarter, adjusted earnings were $4.73 per share.

This Kirkland, WA-based company is likely to have recorded higher revenues in the to-be-reported quarter, driven by solid traction in several verticals. Management’s effort to expand and diversify its product portfolio is a positive factor.

Factors at Play

Monolithic’s growth is driven by healthy momentum across multiple verticals. Enterprise Data, which is already a $800 million business, is expected to gain from growing demand for vertical power delivery and high-density power modules. Automotive remains another major revenue driver for the company. The adoption of autonomous driving systems is moving beyond EVs. This creates a solid growth opportunity for the company. Its diversified end market exposure reduces dependency on any single customer base or vertical, and lowers the risk associated with market volatility in one sector. These factors are expected to have a favorable impact on the company’s financial results in the fourth quarter. 

The consensus estimate for revenues from the Enterprise Data vertical is pegged at $208.36 million, implying solid growth from $194.87 million in the year-ago quarter. The Zacks Consensus Estimate for net sales in the Communication segment is pegged at $76.24 million, suggesting growth from $63.81 million in the year-ago quarter.
 
Contribution from the consumer vertical is expected to be $60.57 million, implying growth from $57.31 million reported in the year-ago quarter. The Zacks Consensus Estimate for net sales from the Industrial vertical is pegged at $59.35 million, suggesting an improvement from the $40.83 million reported in the prior-year quarter.
 
Revenues from the storage and computing vertical are expected to be $178.66 million, indicating growth from the prior-year quarter’s tally of $136.51 million. Net sales from the automotive vertical are pegged at $157.68 million, indicating an increase from $128.34 million reported in the year-ago quarter.

For the December quarter, the Zacks Consensus Estimate for revenues is pegged at $740.72 million, suggesting an increase from $621.66 million reported in the year-ago quarter. The consensus estimate for adjusted earnings per share is pegged at $4.73, implying growth from $4.09 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.

Zacks Rank: MPWR currently carries a Zacks Rank #2.

You can see the complete list of today’s Zacks #1 Rank stocks here.

Monolithic Power Systems, Inc. Price and EPS Surprise

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

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:

Advanced Micro Devices, Inc. AMD is set to release its fourth-quarter 2025 numbers on Feb. 3. It has an Earnings ESP of +2.01% and carries a Zacks Rank #3 at present.
 
The Earnings ESP for Cirrus Logic, Inc. CRUS is +5.90%, and it sports a Zacks Rank of 1 at present. The company is scheduled to report third-quarter fiscal 2026 numbers on Feb. 3.

The Earnings ESP for Alphabet Inc. GOOGL is +0.49%, and it carries a Zacks Rank of 3 at present. The company is scheduled to report fourth-quarter fiscal 2026 numbers on Feb. 4.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research