Power Integrations Earnings: Here’s Why Investors are Buying Shares Now

Power Integrations Inc. (NASDAQ:POWI) delivered a profit and beat Wall Street’s expectations, AND beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company. Shares are up 1.98%.

Power Integrations Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 24.49% to $0.61 in the quarter versus EPS of $0.49 in the year-earlier quarter.

Revenue: Rose 15.08% to $87.9 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Power Integrations Inc. reported adjusted EPS income of $0.61 per share. By that measure, the company beat the mean analyst estimate of $0.58. It beat the average revenue estimate of $87.46 million.

Quoting Management: Balu Balakrishnan, president and CEO of Power Integrations, commented: “Quarterly revenues exceeded our expectations, increasing 14 percent sequentially with growth in all four of our primary end markets. Growth was particularly robust in the industrial market, which is now our largest end market in terms of sales. Strong revenue growth and a higher gross margin enabled our non-GAAP operating margin to expand by more than three percentage points versus the prior quarter, contributing to sequential growth of 30 percent in non-GAAP earnings per share.”

Key Stats (on next page)…

Revenue increased 14.1% from $77.04 million in the previous quarter. EPS increased 29.79% from $0.47 in the previous quarter.

Looking Forward: Analysts have a more positive outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has risen from a profit of $0.56 to a profit $0.62. For the current year, the average estimate has moved up from a profit of $2.10 to a profit of $2.27 over the last ninety days.

Stocks with improving earnings metrics are worthy of your extra attention. In fact, “E = Earnings Are Increasing Quarter-Over-Quarter” is a core component of our CHEAT SHEET investing framework for this very reason. Don’t waste another minute – click here and get our CHEAT SHEET stock picks now.

(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)

More Articles About:   , , ,  

More from The Cheat Sheet