Power Integrations (POWI) Q1 Earnings Report Preview: What To Look For

Semiconductor designer Power Integrations (NASDAQ:POWI) will be announcing earnings results tomorrow after market hours. Here’s what to look for.

Power Integrations met analysts’ revenue expectations last quarter, reporting revenues of $105.3 million, up 17.6% year on year. It was a slower quarter for the company, with revenue guidance for next quarter missing analysts’ expectations significantly and an increase in its inventory levels.

Is Power Integrations a buy or sell going into earnings? Read our full analysis here, it’s free.

This quarter, analysts are expecting Power Integrations’s revenue to grow 15% year on year to $105.5 million, a reversal from the 13.7% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.28 per share.

Analysts covering the company have generally 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 twice over the last two years.

Looking at Power Integrations’s peers in the analog semiconductors segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Himax delivered year-on-year revenue growth of 3.7%, beating analysts’ expectations by 2.4%, and onsemi reported a revenue decline of 22.4%, topping estimates by 3.1%. Himax traded up 1.9% following the results while onsemi was down 8.2%.

Read our full analysis of Himax’s results here and onsemi’s results here.

There has been positive sentiment among investors in the analog semiconductors segment, with share prices up 14.4% on average over the last month. Power Integrations is up 19.8% during the same time and is heading into earnings with an average analyst price target of $71.60 (compared to the current share price of $55.10).

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