Overview

• Semiconductor firm's Q1 revenue rose 3% yr/yr, beating analyst expectations

• Adjusted EPS for Q1 fell yr/yr to $0.25 from $0.31

• Industrial revenue grew 23% yr/yr, led by renewables and battery storage

Outlook

• Power Integrations expects Q2 revenue between $115 mln and $120 mln

• Company sees Q2 GAAP gross margin between 53.5% and 54.5%, non-GAAP 54% to 55%

• Power Integrations expects Q2 GAAP operating margin of 5.5% to 7.5%, non-GAAP 13.5% to 15.5%

Result Drivers

• INDUSTRIAL SEGMENT GROWTH - Co said industrial revenue grew 23% yr/yr, driven by demand in renewables, battery storage, home automation and automotive

• STRATEGIC FOCUS - Co attributed industrial momentum to its focus on high-voltage technologies for markets such as EVs, AI data centers, and DC transmission

Company press release: ID:nBw3p0CNYa

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 2 "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the semiconductors peer group is "buy"

• Wall Street's median 12-month price target for Power Integrations Inc is $58.00, about 25.9% below its May 6 closing price of $78.23

• The stock recently traded at 55 times the next 12-month earnings vs. a P/E of 35 three months ago

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