Power Integrations to report Q3 results: what analysts expect this week

what happened

According to StockStory, semiconductor designer Power Integrations will publish its third-quarter earnings on Wednesday after the market closes. Last quarter the company posted revenue of $118.9 million, up 2.7% from a year earlier. It beat analyst forecasts for both revenue and earnings per share and also comfortably exceeded expectations for operating income.

The market now expects revenue to grow 6% year on year, faster than the gain recorded a year ago. Over the past 30 days, analysts have broadly reaffirmed their estimates. Peers in the analog chip segment have already reported: Impinj grew revenue 16.7% and beat expectations by 4.4%, while Monolithic Power Systems lifted revenue 63.1% and topped estimates by 3.4%. Impinj shares rose 3.4% after its results, while Monolithic Power Systems stock was unchanged.

why it matters

Power Integrations' report is a useful gauge of the analog chip sector, which has struggled over the past year. According to StockStory, analog semiconductor shares have fallen 20.2% on average over the last month, and Power Integrations itself is down 17.5% over the same period. Analysts' average price target is $71.75 against a share price of $44.87. Investors will be watching whether the quarterly numbers confirm that growth is holding up across the sector.

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