Power Integrations (NASDAQ:POWI) Issues Earnings Results, Beats Estimates By $0.04 EPS

Power Integrations (NASDAQ:POWI) released its quarterly earnings data on Wednesday. The semiconductor company reported $0.46 earnings per share for the quarter, topping analysts’ consensus estimates of $0.42 by $0.04, FiscalAI reports. The company had revenue of $125.48 million for the quarter, compared to analyst estimates of $126.03 million. Power Integrations had a return on equity of 5.50% and a net margin of 5.58%.

Here are the key takeaways from Power Integrations’ conference call:

• Profitability and cash generation improved: Q3 revenue rose 6% year over year to $125.5 million, while non-GAAP operating margin reached 21.4% and EPS increased 28% year over year. The company also generated $37 million in free cash flow and raised its quarterly dividend.
• Q4 outlook implies continued growth: The company forecast revenue of $118 million to $126 million, with the midpoint representing 18% year-over-year growth, and expects non-GAAP gross margin of about 55%. Management attributed the outlook to industrial strength and recent design wins, while noting softer consumer demand and supply constraints.
• Elevated channel inventory and supply issues remain risks: Channel inventory rose 4.5 weeks to 11.8 weeks amid weak appliance demand, delayed metering projects, and customers’ higher buffer-stock requirements; management expects inventory to remain above target and potentially sit at 9–10 weeks next year. Separately, high-power demand currently exceeds supply, with packaging and PCB constraints limiting the company’s ability to fulfill it.
• GaN and strategic-market opportunities are expanding: Power Integrations reported strong GaN design-win momentum, growing data-center opportunities—including four 800-volt auxiliary-power design-ins expected to enter production in 2027—and a larger automotive pipeline. Management sees potential to double its serviceable addressable market by 2031, though main-path data-center products are expected to roll out in 2028–2029.

Power Integrations Stock Performance

Shares of NASDAQ POWI traded down $0.19 during mid-day trading on Wednesday, reaching $46.80. 663,170 shares of the company’s stock were exchanged, compared to its average volume of 944,645. The company’s 50-day moving average is $49.65 and its 200-day moving average is $58.59. The firm has a market capitalization of $2.61 billion, a price-to-earnings ratio of 104.00 and a beta of 1.58. Power Integrations has a 52-week low of $30.86 and a 52-week high of $91.18.

Analyst Ratings Changes

A number of analysts have issued reports on the company. Weiss Ratings raised Power Integrations from a “sell (d+)” rating to a “hold (c-)” rating in a research note on Wednesday, August 19th. Susquehanna reduced their target price on shares of Power Integrations from $85.00 to $70.00 and set a “positive” rating on the stock in a research note on Wednesday, October 21st. Williams Trading set a $80.00 target price on shares of Power Integrations in a report on Thursday, August 6th. Wall Street Zen raised shares of Power Integrations from a “hold” rating to a “buy” rating in a research note on Saturday, August 8th. Finally, Stifel Nicolaus dropped their price target on shares of Power Integrations from $80.00 to $72.00 and set a “buy” rating for the company in a research note on Monday, October 5th. Four investment analysts have rated the stock with a Buy rating and four have assigned a Hold rating to the stock. According to data from MarketBeat, Power Integrations currently has an average rating of “Moderate Buy” and a consensus price target of $68.83.

Power Integrations Company Profile

Power Integrations, Inc designs and manufactures high-performance semiconductor technologies used in energy-efficient power conversion. Its products help convert and control electrical power in applications such as consumer electronics, appliances, industrial equipment, communications infrastructure, renewable-energy systems, and electric vehicles.

The company’s product portfolio includes integrated circuits for AC-to-DC and DC-to-DC power supplies, LED lighting drivers, power-factor correction, motor drives, and high-voltage gate driving.