Power Integrations Earnings: Here’s Why Investors are Happy Now

Power Integrations Inc. (NASDAQ:POWI) delivered a profit and missed Wall Street’s expectations, AND came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company. Shares are up 0.02%.

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Power Integrations Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 30.56% to $0.47 in the quarter versus EPS of $0.36 in the year-earlier quarter.

Revenue: Rose 7.34% to $77.04 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Power Integrations Inc. reported adjusted EPS income of $0.47 per share. By that measure, the company missed the mean analyst estimate of $0.48. It missed the average revenue estimate of $79.57 million.

Quoting Management: Commented Balu Balakrishnan, president and CEO of Power Integrations: “First-quarter revenues were within our projected range, albeit toward the lower end due in large part to a decline of nearly 20 percent in revenues from the computer market. Nevertheless, recent trends indicate that the broader demand environment is improving. Revenues from industrial and consumer applications, which account for nearly 70 percent of our sales, both increased sequentially in the first quarter. Book-to-bill was well above 1.0 for the quarter as total bookings increased more than 10 percent sequentially. While economic conditions remain uncertain, we believe these factors point toward sequential growth in the second quarter, and we expect our revenues for Q2 to be between $79 million and $85 million.”

Key Stats (on next page)…

Revenue decreased 2.69% from $79.17 million in the previous quarter. EPS increased 0% 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 $0.47 to a profit $0.51. For the current year, the average estimate has moved up from a profit of $1.94 to a profit of $2.1 over the last ninety days.

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