Monday, August 15, 2022
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POWI Stock: Power Integrations Misses Sales Target, Guides Lower


Chipmaker Power Integrations (POWI) late Thursday beat Wall Street’s earnings target for the second quarter but missed views on sales. It also gave disappointing third-quarter guidance, citing weak Chinese smartphone sales. POWI stock fell in extended trading.




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The San Jose, Calif.-based company earned an adjusted $1.03 a share on sales of $184 million in the June quarter. Analysts polled by FactSet expected earnings per share of 98 cents on sales of $190.2 million. On a year-over-year basis, Power Integrations earnings rose 24% while sales inched up 2%.

For the current quarter, Power Integrations forecast revenue of $165 million. But analysts sought $198.5 million in third-quarter sales. In the same quarter last year, Power Integrations generated $176.8 million in revenue.

“Our second-quarter revenues and third-quarter outlook reflect softness at Chinese smartphone customers as well as broader macroeconomic headwinds,” Chief Executive Balu Balakrishnan said in a news release.

He added, “While the near-term demand outlook has weakened, we continue to make great progress on long-term growth initiatives like automotive, motor drive, and expanding our portfolio of products incorporating our energy-efficient, proprietary GaN (gallium nitride) technology.”

POWI Stock Falls After Report

In after-hours trading on the stock market today, POWI stock fell 1.4% to 84. During the regular session Thursday, POWI stock rose 1.3% to close at 85.17.

Power Integrations makes semiconductors for high-voltage power conversion.

POWI stock ranks No. 12 out of 34 stocks in IBD’s fabless semiconductor industry group, according to IBD Stock Checkup. It has an IBD Composite Rating of 82 out of 99. IBD’s Composite Rating combines five separate proprietary ratings into one easy-to-use rating. The best growth stocks have a Composite Rating of 90 or better.

Follow Patrick Seitz on Twitter at @IBD_PSeitz for more stories on consumer technology, software and semiconductor stocks.

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