What To Expect From Power Integrations's (POWI) Q1 Earnings

Semiconductor designer Power Integrations (NASDAQ:POWI) will be announcing earnings results tomorrow after market close. Here's what investors should know.

Power Integrations met analysts' revenue expectations last quarter, reporting revenues of $89.51 million, down 28.3% year on year. It was a weak quarter for the company, with underwhelming revenue guidance for the next quarter and a decline in its operating margin.

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 decline 15.4% year on year to $89.96 million, improving from the 41.6% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.13 per share.

The majority of analysts covering the company have 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 five times 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. Impinj's revenues decreased 10.6% year on year, beating analysts' expectations by 4.4%, and ON Semiconductor reported a revenue decline of 4.9%, in line with consensus estimates. Impinj traded up 28.8% following the results while ON Semiconductor was also up 3.1%.

Read our full analysis of Impinj's results here and ON Semiconductor's results here.

Investors in the analog semiconductors segment have had steady hands going into earnings, with share prices flat over the last month. Power Integrations is down 1.3% during the same time and is heading into earnings with an average analyst price target of $87.6 (compared to the current share price of $68.64).

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