Monolithic Power's stock plummeted 5.04% during intraday trading on Thursday, extending declines from earlier sessions as investors continued to take profits following the company's strong first-quarter results.
The sell-off reflects profit-taking pressure despite Monolithic Power reporting better-than-expected Q1 earnings and raising its revenue guidance. The company posted adjusted earnings per share of $5.10, beating estimates of $4.89, while revenue reached $804 million, exceeding expectations of $781 million. Additionally, the company raised its manufacturing capacity target from $4 billion to approximately $6 billion and projected full-year revenue growth of approximately 85% year-over-year.
Broader weakness in the semiconductor sector has compounded the selling pressure, with several major chip stocks also trading lower. The profit-taking comes as Monolithic Power's stock had gained over 73% year-to-date and 147% over the past 52 weeks prior to the recent decline.
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