Monolithic Power Systems (MPS), a leading developer of integrated power semiconductor solutions and power-delivery architectures, saw a 16% increase in their shares to $747.15 following their acquisition of fabless semiconductor startup Axign. MPS plans to expand its presence in the Netherlands, where Axign is based. The financial terms of the deal remain undisclosed.
Moreover, MPS announced a 25% increase in their quarterly cash dividend, raising it to $1.25 per share from $1 per share. Shareholders of record at the close of business on March 29 will receive the dividend on April 15. With the new payout, amounting to $5 per year, the annual yield stands at approximately 0.8% based on the closing price of $645.41 on Wednesday.
In addition to these developments, MPS released its fourth-quarter results and outlook for the first quarter. The company reported a net income of $96.9 million, or $1.98 per share, for the three months ended December 31. This is a decrease from the net income of $119.1 million, or $2.45 per share, in the same period the previous year. However, adjusted earnings came in at $2.88 per share, slightly surpassing analysts’ estimates of $2.85 per share.
Meanwhile, revenue figures for the fourth quarter showed a decline to approximately $454 million from about $460 million. Despite this decrease, it still exceeded analysts’ expectations of $452.1 million according to FactSet.
Looking ahead to the first quarter ending on March 1, MPS projects revenue in the range of $437 million to $457 million. Analysts polled by FactSet had anticipated revenue totaling $444.5 million.
Overall, Monolithic Power Systems is experiencing strong growth and is currently the top performer in the S&P 500, with its stock up 61% over the past year. This recent acquisition and dividend increase further highlight the company’s commitment to expanding its market presence and maximizing shareholder value.
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