Why Monolithic Power Systems Stock Is Plummeting Today
Monolithic Power Systems (NASDAQ: MPWR) stock is suffering big sell-offs in Friday's trading. The company's share price was down 11.3% as of 3 p.m. ET and had been down as much as 13.9% earlier in trading.
Monolithic reported its third-quarter results after yesterday's market close and delivered numbers that beat Wall Street's expectations. While the Q3 results beat the market's targets, the company's forward guidance fell short of what some investors were looking for.
In Q3, Monolithic generated non-GAAP (adjusted) earnings per share of $4.73 -- beating the average analyst estimate of per-share earnings of $0.10. Revenue for the period came in at $737.18 million and beat the average analyst estimate by roughly $18.9 million. Sales were up roughly 11% year over year in the quarter, and adjusted earnings rose approximately 16.5%. On the other hand, the company's adjusted gross margin declined from 55.8% in last year's quarter to 55.5% in this year's period
Source Fool.com
