Power Integrations (POWI) Reports Earnings Tomorrow. What To Expect

Semiconductor designer Power Integrations (NASDAQ:POWI) will be reporting earnings tomorrow after the bell. Here's what you need to know.

Last quarter Power Integrations reported revenues of $125.5 million, down 21.7% year on year, missing analyst expectations by 3.7%. It was a weak quarter for the company, with underwhelming revenue guidance for the next quarter and a miss of analysts' revenue estimates.

Is Power Integrations buy or sell heading into the earnings? Read our full analysis here, it's free.

This quarter analysts are expecting Power Integrations's revenue to decline 27.7% year on year to $90.15 million, a further deceleration on the 27.7% year-over-year decrease in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.15 per share.

Majority of analysts covering the company have reconfirmed their estimates over the last thirty days, suggesting they are expecting the business to stay the course heading into the earnings. The company missed Wall St's revenue estimates four times over the last two years.

Looking at Power Integrations's peers in the analog semiconductors segment, some of them have already reported Q4 earnings results, giving us a hint of what we can expect. Himax's revenues decreased 13.2% year on year, beating analyst estimates by 0.4% and MACOM reported revenue decline of 12.7% year on year, exceeding estimates by 2.9%. MACOM was up 4.3%, Himax was flat on the results.

Read our full analysis of Himax's results here and MACOM's results here.

There has been positive sentiment among investors in the analog semiconductors segment, with the stocks up on average 2.8% over the last month. Power Integrations is down 4.4% during the same time, and is heading into the earnings with analyst price target of $82, compared to share price of $73.8.

One way to find opportunities in the market is to watch for generational shifts in the economy. Almost every company is slowly finding itself becoming a technology company and facing cybersecurity risks and as a result, the demand for cloud-native cybersecurity is skyrocketing. This company is leading a massive technological shift in the industry and with revenue growth of 70% year on year and best-in-class SaaS metrics it should definitely be on your radar.

Join Paid Stock Investor Research

Help us make StockStory more helpful to investors like yourself. Join our paid user research session and receive a $50 Amazon gift card for your opinions. Sign up here.

The author has no position in any of the stocks mentioned.