POWI Earnings Prediction
The chart below shows how POWI performed 10 days before and after its earnings report, based on data from the past quarters. Typically, POWI sees a +0.25% change in stock price 10 days leading up to the earnings, and a +2.36% change 10 days following the report. On the earnings day itself, the stock moves by -0.37%. This data can give you a slight idea of what to expect for the next quarter's release.
POWI Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
105.25M
17.59%
-9.14%
Gross Margin
54.41%
5.38%
-0.22%
Operating Margin
3.72%
417.95%
-62.80%
Net Margin
8.68%
-45.55%
-29.66%
EPS
0.16
-36.00%
-36.00%
No Data Available
POWI Earnings Analysis
Power Integrations Inc Corporation (POWI.O) Earnings Conference Call
Positive
Strong Revenue Performance: Revenues increased by 18% year over year to $105 million in Q4, demonstrating strong performance despite a challenging market environment.
Gross Margin Stability and Improvement: The non-GAAP gross margin for Q4 remained stable at 55.1%, with a full-year gross margin of 54.4%, up more than two percentage points from the prior year, indicating improved operational efficiency.
Strong Cash Generation: Cash flow from operations for Q4 was $15 million, contributing to a total of $81 million for the year, showcasing strong cash generation capabilities.
Shareholder Value Return: The company returned $74 million to stockholders through dividends and share buybacks, reflecting a commitment to returning value to shareholders.
Revenue Growth Expectations 2025: Expectations for 2025 indicate a healthy rate of revenue growth across all segments, particularly in industrial and consumer categories, driven by new product introductions and market expansion.
Negative
Revenue Decline Analysis: Revenues for the full year were $419,000,000, down 6% from the prior year, primarily due to a more than 60% decline in the communications category following the exit from the China OEM cell phone business.
Consumer Revenue Decline: Consumer revenues were down mid-teens sequentially, reflecting continued softness in major appliances in the U.S., Europe, and China, with finished goods inventory at Chinese OEMs remaining elevated.
Industrial Revenue Decline: Industrial revenues were down 10% sequentially, largely driven by the timing of shipments for metering applications, indicating a slowdown in this segment.
Channel Inventory Analysis: Total channel inventory rose to 8.4 weeks, up from 8.6 weeks last quarter, reflecting a slight increase in inventory levels despite a decrease in revenues.
Operating Expenses Increase: Non GAAP operating expenses for the full year were $174,000,000, up 4% from the prior year, indicating rising costs despite stagnant revenue growth.
POWI FAQs
How does POWI typically perform around its earnings report dates?
Is Power Integrations Inc (POWI) Q4 2024 Earnings Call Summary positive or negative?
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POWI Earning Call Sentiment
Earnings call transcript: Power Integrations Q4 2024 sees revenue rise 18%
POWI.O
-2.91%Positive
The company reported strong Q4 revenue growth and maintained gross margins, which is positive. GaN product development and industrial growth outlooks are promising. The 5% dividend increase and share repurchase program are positive signals for shareholder returns. However, challenges like elevated inventory levels and regulatory risks exist. Overall, the positives, especially in GaN and shareholder returns, outweigh the negatives, suggesting a positive sentiment. Given the market cap, the stock price is likely to move positively by 2% to 8% in the next two weeks.
