Power Integrations (NASDAQ:POWI) Releases Quarterly Earnings Results, Beats Expectations By $0.05 EPS

Power Integrations (NASDAQ:POWI) released its quarterly earnings data on Wednesday. The semiconductor company reported $0.37 EPS for the quarter, beating the consensus estimate of $0.32 by $0.05, FiscalAI reports. Power Integrations had a return on equity of 5.34% and a net margin of 3.72%.The firm had revenue of $118.94 million during the quarter, compared to the consensus estimate of $117.44 million. During the same quarter in the previous year, the company posted $0.35 earnings per share. The company’s quarterly revenue was up 2.6% on a year-over-year basis.

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

• Q2 revenue rose 10% sequentially to $118.9 million, with growth across all four end-market categories; non-GAAP operating margin expanded to 17.1% and free cash flow reached $18 million.
• Industrial revenue grew 14% in Q2 and 16% year-to-date, while automotive revenue is on track to double in 2026. The company also cited new automotive GaN and utility-scale battery-storage design wins.
• Power Integrations expects Q3 revenue of $122 million to $130 million, with communications, computer, and industrial sales continuing to grow; it now expects full-year non-GAAP operating expenses to decline by low single digits.
• Channel inventory declined to 7.3 weeks, returning to management’s targeted healthy range, while the company expects further inventory reductions in the second half and believes its supply-chain structure could support customer upside.
• The demonstrated 2,200-volt PowiGaN technology strengthens the company’s long-term data-center, automotive, and infrastructure roadmap, but management said meaningful products and revenue are likely several years away; near-term data-center revenue is expected primarily from auxiliary-power designs around 2028.

Power Integrations Trading Down 4.1%

Shares of POWI traded down $2.62 during trading hours on Wednesday, reaching $61.95. 796,504 shares of the stock traded hands, compared to its average volume of 702,161. Power Integrations has a 52 week low of $30.86 and a 52 week high of $91.18. The company has a market cap of $3.45 billion, a price-to-earnings ratio of 206.51 and a beta of 1.58. The stock has a fifty day simple moving average of $74.56 and a 200 day simple moving average of $61.89.

Power Integrations Dividend Announcement

The business also recently disclosed a quarterly dividend, which was paid on Tuesday, June 30th. Shareholders of record on Friday, May 29th were paid a dividend of $0.215 per share. The ex-dividend date was Friday, May 29th. This represents a $0.86 annualized dividend and a yield of 1.4%. Power Integrations’s dividend payout ratio (DPR) is 286.67%.

Insiders Place Their Bets

In other Power Integrations news, Director Balu Balakrishnan sold 124,287 shares of Power Integrations stock in a transaction that occurred on Thursday, May 28th. The shares were sold at an average price of $86.44, for a total transaction of $10,743,368.28. Following the transaction, the director owned 279,516 shares of the company’s stock, valued at $24,161,363.04. This trade represents a 30.78% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through the SEC website. Also, VP Sunil Gupta sold 6,860 shares of the business’s stock in a transaction that occurred on Friday, May 29th. The stock was sold at an average price of $83.67, for a total value of $573,976.20. Following the completion of the transaction, the vice president owned 64,379 shares in the company, valued at $5,386,590.93. The trade was a 9.63% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. In the last ninety days, insiders sold 334,772 shares of company stock valued at $27,322,535. Corporate insiders own 1.20% of the company’s stock.

Institutional Trading of Power Integrations

A number of institutional investors and hedge funds have recently modified their holdings of the business. Snyder Capital Management L P lifted its holdings in Power Integrations by 148.8% during the fourth quarter. Snyder Capital Management L P now owns 2,064,707 shares of the semiconductor company’s stock worth $73,380,000 after acquiring an additional 1,234,981 shares during the period. Price T Rowe Associates Inc. MD grew its stake in Power Integrations by 1,885.7% in the 4th quarter. Price T Rowe Associates Inc. MD now owns 943,365 shares of the semiconductor company’s stock valued at $33,528,000 after purchasing an additional 895,857 shares during the period. Wellington Management Group LLP increased its position in shares of Power Integrations by 35.7% during the 3rd quarter. Wellington Management Group LLP now owns 2,261,281 shares of the semiconductor company’s stock valued at $90,926,000 after purchasing an additional 595,404 shares during the last quarter. State Street Corp increased its position in shares of Power Integrations by 18.0% during the 4th quarter. State Street Corp now owns 3,400,970 shares of the semiconductor company’s stock valued at $120,870,000 after purchasing an additional 518,284 shares during the last quarter. Finally, Squarepoint Ops LLC increased its position in shares of Power Integrations by 843.8% during the 2nd quarter. Squarepoint Ops LLC now owns 519,952 shares of the semiconductor company’s stock valued at $29,065,000 after purchasing an additional 464,858 shares during the last quarter.

Analyst Upgrades and Downgrades

A number of brokerages have commented on POWI. Weiss Ratings restated a “sell (d+)” rating on shares of Power Integrations in a research note on Friday, May 8th. Deutsche Bank Aktiengesellschaft reaffirmed a “hold” rating on shares of Power Integrations in a research note on Friday, May 8th. Needham & Company LLC initiated coverage on shares of Power Integrations in a report on Wednesday, June 10th. They set a “buy” rating and a $90.00 price objective for the company. Stifel Nicolaus boosted their target price on shares of Power Integrations from $82.00 to $95.00 and gave the stock a “buy” rating in a research report on Wednesday, June 24th. Finally, Zacks Research downgraded shares of Power Integrations from a “strong-buy” rating to a “hold” rating in a research report on Monday, July 20th. Four investment analysts have rated the stock with a Buy rating, three have assigned a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat, the stock has a consensus rating of “Hold” and a consensus target price of $76.20.

Power Integrations Company Profile

Power Integrations, Inc, based in Hillsboro, Oregon, specializes in the design and development of high-performance analog and mixed-signal integrated circuits for energy-efficient power conversion. The company’s products are used to convert and regulate electrical power in a wide range of applications, from consumer electronics and industrial systems to communications equipment and electric vehicle charging. By providing compact, reliable, and highly integrated solutions, Power Integrations aims to reduce system size, improve efficiency, and simplify thermal management for its customers.

The firm’s product portfolio encompasses isolated and non-isolated switching controllers for both AC-DC and DC-DC power conversion.