Power Integrations (NASDAQ:POWI) Releases Quarterly Earnings Results

Power Integrations (NASDAQ:POWI) released its quarterly earnings results on Thursday. The semiconductor company reported $0.25 EPS for the quarter, beating the consensus estimate of $0.23 by $0.02, FiscalAI reports. The business had revenue of $108.31 million during the quarter, compared to analyst estimates of $106.75 million. Power Integrations had a net margin of 3.72% and a return on equity of 5.32%. The company’s quarterly revenue was up 2.6% on a year-over-year basis. During the same period in the prior year, the firm posted $0.31 earnings per share.

Here are the key takeaways from Power Integrations’ conference call:

• Q1 results beat modestly with $108.3M revenue (+3% YoY), non?GAAP EPS of $0.25, $18M free cash flow and a non?GAAP gross margin of 53.5%.
• Management guided Q2 revenue of $115M–$120M (midpoint +8.5% sequential) with gross margin expected to rise to 54%–55% and target non?GAAP operating margin of 13.5%–15.5%.
• Organizational changes to bring customer voice closer to R&D include hiring Mike Balow as SVP Worldwide Sales and moving application engineers into R&D to accelerate time?to?market.
• Product and market momentum around high?voltage GaN — including TinySwitch?5, TOPSwitchGaN and PowiGaN — with design wins in industrial, appliances and data center; management estimates data?center SAM (rack + grid) will exceed $1 billion by 2030 and cites engagements with 17 of the top 20 EV OEMs.
• Consumer/appliance demand remains uneven (Q1 consumer down YoY) and balance?sheet inventory is still elevated with 292 days on hand and ~8.9 weeks channel stock, though both are trending toward company targets.

Power Integrations Price Performance

NASDAQ:POWI traded up $1.45 during midday trading on Friday, hitting $73.28. The company’s stock had a trading volume of 1,563,139 shares, compared to its average volume of 1,207,998. Power Integrations has a fifty-two week low of $30.86 and a fifty-two week high of $81.59. The firm’s 50 day moving average is $55.06 and its 200-day moving average is $45.36. The firm has a market cap of $4.08 billion, a P/E ratio of 244.27, a P/E/G ratio of 5.56 and a beta of 1.54.

Power Integrations Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Tuesday, June 30th. Investors of record on Friday, May 29th will be issued a $0.215 dividend. This represents a $0.86 annualized dividend and a yield of 1.2%. The ex-dividend date is Friday, May 29th. Power Integrations’s dividend payout ratio is 286.67%.

Insider Buying and Selling at Power Integrations

In related news, CEO Jennifer A. Lloyd sold 3,322 shares of the stock in a transaction that occurred on Monday, February 9th. The shares were sold at an average price of $46.57, for a total value of $154,705.54. Following the transaction, the chief executive officer owned 76,307 shares in the company, valued at approximately $3,553,616.99. This represents a 4.17% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. Also, Director Balu Balakrishnan sold 6,368 shares of the stock in a transaction that occurred on Monday, February 9th. The stock was sold at an average price of $46.53, for a total transaction of $296,303.04. Following the completion of the transaction, the director owned 581,251 shares in the company, valued at approximately $27,045,609.03. This trade represents a 1.08% decrease in their position. The SEC filing for this sale provides additional information. Insiders have sold a total of 21,152 shares of company stock worth $994,599 in the last 90 days. Corporate insiders own 1.40% of the company’s stock.

Hedge Funds Weigh In On Power Integrations

Institutional investors have recently made changes to their positions in the company. Geneos Wealth Management Inc. increased its holdings in shares of Power Integrations by 576.3% during the 1st quarter. Geneos Wealth Management Inc. now owns 629 shares of the semiconductor company’s stock valued at $32,000 after purchasing an additional 536 shares in the last quarter. Kestra Advisory Services LLC purchased a new position in shares of Power Integrations during the 4th quarter valued at approximately $36,000. UMB Bank n.a. increased its holdings in shares of Power Integrations by 61.7% during the 4th quarter. UMB Bank n.a. now owns 1,074 shares of the semiconductor company’s stock valued at $38,000 after purchasing an additional 410 shares in the last quarter. Osaic Holdings Inc. increased its holdings in shares of Power Integrations by 76.2% during the 2nd quarter. Osaic Holdings Inc. now owns 1,721 shares of the semiconductor company’s stock valued at $92,000 after purchasing an additional 744 shares in the last quarter. Finally, Strs Ohio purchased a new position in shares of Power Integrations during the 1st quarter valued at approximately $126,000.

Trending Headlines about Power Integrations

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

• Positive Sentiment: Susquehanna raised its price target on Power Integrations to $85 from $70 and reiterated a positive rating, signaling more upside optimism after the latest results. Benzinga The Fly
• Positive Sentiment: Power Integrations reported first-quarter earnings of $0.25 per share, topping estimates, and revenue of $108.3 million versus consensus of $106.8 million, suggesting continued demand resilience. MarketBeat
• Positive Sentiment: The company’s second-quarter revenue guidance of $115 million to $120 million brackets Wall Street’s forecast, which investors may view as a constructive outlook following the earnings release. MarketBeat
• Positive Sentiment: Power Integrations declared a quarterly dividend of $0.215 per share, reinforcing capital return to shareholders. MSN
• Neutral Sentiment: The company appointed semiconductor veteran Mike Balow as senior vice president of worldwide sales, a leadership move that could support future growth but does not have an immediate financial impact. TipRanks
• Neutral Sentiment: The company also noted improving inventory levels, which is encouraging for operations but is still early evidence rather than a confirmed long-term trend. MSN

Wall Street Analysts Forecast Growth

Several analysts have commented on POWI shares. Northland Securities lowered shares of Power Integrations from an “outperform” rating to a “market perform” rating and set a $46.00 price target for the company. in a research report on Monday, April 6th. Zacks Research raised shares of Power Integrations from a “strong sell” rating to a “hold” rating in a research report on Thursday, February 26th. Benchmark increased their price target on shares of Power Integrations from $55.00 to $65.00 and gave the company a “buy” rating in a research report on Monday, April 6th. Deutsche Bank Aktiengesellschaft reaffirmed a “hold” rating on shares of Power Integrations in a research report on Friday. Finally, Susquehanna increased their price objective on shares of Power Integrations from $70.00 to $85.00 and gave the company a “positive” rating in a research report on Friday. Three investment analysts have rated the stock with a Buy rating, three have given a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat, the company currently has a consensus rating of “Hold” and an average target price of $64.50.

Power Integrations Company Profile

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.