Power Integrations, Inc. (NASDAQ:POWI) Announces Quarterly Dividend of $0.21

Power Integrations, Inc. (NASDAQ:POWI) announced a quarterly dividend on Wednesday, August 5th. Stockholders of record on Monday, August 31st will be paid a dividend of 0.215 per share by the semiconductor company on Wednesday, September 30th. This represents a c) annualized dividend and a dividend yield of 1.4%. The ex-dividend date of this dividend is Monday, August 31st.

Power Integrations has raised its dividend by an average of 0.1%per year over the last three years and has increased its dividend annually for the last 12 consecutive years. Power Integrations has a payout ratio of 43.0% meaning its dividend is sufficiently covered by earnings. Equities research analysts expect Power Integrations to earn $1.01 per share next year, which means the company should continue to be able to cover its $0.86 annual dividend with an expected future payout ratio of 85.1%.

Power Integrations Trading Down 4.1%

Shares of Power Integrations stock opened at $61.95 on Thursday. Power Integrations has a twelve month low of $30.86 and a twelve month high of $91.18. The firm’s 50-day moving average price is $74.56 and its 200 day moving average price is $61.89. The firm has a market capitalization of $3.45 billion, a PE ratio of 206.51 and a beta of 1.58.

Power Integrations (NASDAQ:POWI) last issued its earnings results on Wednesday, August 5th. The semiconductor company reported $0.37 EPS for the quarter, beating analysts’ consensus estimates of $0.32 by $0.05. Power Integrations had a net margin of 3.72% and a return on equity of 5.34%. The business had revenue of $118.94 million during the quarter, compared to analysts’ expectations of $117.44 million. During the same period in the prior year, the business earned $0.35 earnings per share. The company’s quarterly revenue was up 2.6% compared to the same quarter last year. On average, sell-side analysts predict that Power Integrations will post 0.76 EPS for the current fiscal year.

Key Power Integrations News

Here are the key news stories impacting Power Integrations this week:

• Positive Sentiment: Q2 earnings and revenue exceeded expectations. Power Integrations reported adjusted earnings of $0.37 per share, above the $0.32 consensus estimate and up from $0.35 a year earlier. Revenue increased 2.6% year over year to $118.94 million, topping expectations of $117.44 million. Power Integrations Q2 Earnings and Revenues Beat Estimates
• Positive Sentiment: Inventory conditions improved. Reports on the quarter highlighted improving inventory levels, a development that could support future shipments and reduce supply-chain pressure. Power Integrations Q2 Beats on Revenue, Inventory Levels Improve
• Positive Sentiment: New 2,200-volt GaN technology may expand long-term opportunities. Power Integrations demonstrated what it called the world’s first 2,200 V gallium-nitride technology for next-generation high-voltage power systems, potentially strengthening its technology position in industrial and power-conversion markets. Power Integrations Demonstrates 2200 V GaN Technology
• Neutral Sentiment: Third-quarter revenue guidance is broadly in line. Management forecast revenue of $122 million to $130 million, compared with analyst expectations of $125.6 million. The lack of clearly stronger guidance may limit enthusiasm following the earnings beat.
• Neutral Sentiment: Shareholders will receive another dividend. Power Integrations declared a quarterly dividend of $0.215 per share, payable September 30 to investors of record August 31. The annualized payout is $0.86 per share, implying a yield of approximately 1.4%; the ex-dividend date is August 31.
• Negative Sentiment: Valuation leaves little room for disappointment. With a reported price-to-earnings ratio above 200 and modest revenue growth, investors may be demanding faster growth or more optimistic guidance. That valuation pressure could outweigh the quarterly earnings beat.

About Power Integrations

Power Integrations, Inc, based in Hillsboro, Oregon, specializes in the design and development of high-performance analog and mixed-signal integrated circuits for energy-efficient power conversion. The company’s products are used to convert and regulate electrical power in a wide range of applications, from consumer electronics and industrial systems to communications equipment and electric vehicle charging. By providing compact, reliable, and highly integrated solutions, Power Integrations aims to reduce system size, improve efficiency, and simplify thermal management for its customers.

The firm’s product portfolio encompasses isolated and non-isolated switching controllers for both AC-DC and DC-DC power conversion.