Stock Story -
Semiconductor designer Power Integrations (NASDAQ:POWI) will be announcing earnings results tomorrow after market hours. Here's what investors should know.
Power Integrations beat analysts' revenue expectations by 1.9% last quarter, reporting revenues of $91.69 million, down 13.7% year on year. It was a decent quarter for the company, with an impressive beat of analysts' EPS estimates but a decline in its operating margin.
Is Power Integrations a buy or sell going into earnings? Find out by reading the original article on StockStory, it's free.
This quarter, analysts are expecting Power Integrations's revenue to decline 14.8% year on year to $105 million, improving from the 33% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.26 per share.
The majority of analysts covering the company have 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 five times over the last two years.
Looking at Power Integrations's peers in the analog semiconductors segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Impinj (NASDAQ:PI) delivered year-on-year revenue growth of 19.2%, beating analysts' expectations by 5.2%, and Universal Display (NASDAQ:OLED) reported revenues up 8.1%, in line with consensus estimates. Impinj traded up 4.6% following the results while Universal Display was down 19%.
Read the full analysis of Impinj's and Universal Display's results on StockStory.
Inflation fears have put pressure on growth stocks, and analog semiconductors stocks have not been spared, with share prices down 17.2% on average over the last month. Power Integrations is down 2.2% during the same time and is heading into earnings with an average analyst price target of $87.6 (compared to the current share price of $70.31).
