Shares of Monolithic Power Systems (MPWR) surged 5.45% in after-hours trading on Thursday following the release of its second-quarter earnings report that exceeded analyst expectations and provided an optimistic outlook for the third quarter.
The semiconductor company reported Q2 revenue of $664.6 million, surpassing the consensus estimate of $649.88 million. Non-GAAP earnings per share came in at $4.21, beating the expected $4.11. This performance represents a significant improvement from the same period last year, with revenue up 30.97% and earnings per share increasing by 32.81%.
Adding to the positive sentiment, Monolithic Power Systems provided strong guidance for the third quarter, projecting revenue between $710 million and $730 million, well above the analyst consensus of $679.4 million. CEO Michael Hsing expressed confidence in the company's growth strategy, stating, "Our proven, long-term growth strategy remains intact as we continue our transformation from being a chip-only, semiconductor supplier to a full service, silicon-based solutions provider."
The combination of strong Q2 results, upbeat Q3 guidance, and management's positive outlook on the company's strategic direction appears to be driving investor enthusiasm, resulting in the significant after-hours stock price increase.
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