Monolithic Power Systems, Inc. (NASDAQ:MPWR) Third-Quarter Results Just Came Out: Here's What Analysts Are Forecasting For Next Year

It's been a mediocre week for Monolithic Power Systems, Inc. (NASDAQ:MPWR) shareholders, with the stock dropping 16% to US$759 in the week since its latest quarterly results. Results overall were respectable, with statutory earnings of US$2.95 per share roughly in line with what the analysts had forecast. Revenues of US$620m came in 3.3% ahead of analyst predictions. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

See our latest analysis for Monolithic Power Systems

Taking into account the latest results, the most recent consensus for Monolithic Power Systems from 13 analysts is for revenues of US$2.65b in 2025. If met, it would imply a huge 30% increase on its revenue over the past 12 months. Per-share earnings are expected to leap 51% to US$13.47. In the lead-up to this report, the analysts had been modelling revenues of US$2.63b and earnings per share (EPS) of US$13.59 in 2025. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.

It will come as no surprise then, to learn that the consensus price target is largely unchanged at US$930. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. There are some variant perceptions on Monolithic Power Systems, with the most bullish analyst valuing it at US$1,100 and the most bearish at US$700 per share. This shows there is still a bit of diversity in estimates, but analysts don't appear to be totally split on the stock as though it might be a success or failure situation.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. The period to the end of 2025 brings more of the same, according to the analysts, with revenue forecast to display 23% growth on an annualised basis. That is in line with its 24% annual growth over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenues grow 18% per year. So it's pretty clear that Monolithic Power Systems is forecast to grow substantially faster than its industry.

The Bottom Line

The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. Fortunately, they also reconfirmed their revenue numbers, suggesting that it's tracking in line with expectations. Additionally, our data suggests that revenue is expected to grow faster than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. At Simply Wall St, we have a full range of analyst estimates for Monolithic Power Systems going out to 2026, and you can see them free on our platform here..

You still need to take note of risks, for example - Monolithic Power Systems has 1 warning sign we think you should be aware of.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.