Power Integrations, Inc. Announces Quarterly Dividend of $0.21 (NASDAQ:POWI)

Power Integrations, Inc. (NASDAQ:POWI) announced a quarterly dividend on Wednesday, August 5th. Stockholders of record on Monday, August 31st will be given a dividend of 0.215 per share by the semiconductor company on Wednesday, September 30th. This represents a c) annualized dividend and a dividend yield of 1.4%. The ex-dividend date of this dividend is Monday, August 31st.

Power Integrations has increased its dividend by an average of 0.1%per year over the last three years and has raised its dividend annually for the last 12 consecutive years. Power Integrations has a payout ratio of 43.0% indicating that its dividend is sufficiently covered by earnings. Analysts expect Power Integrations to earn $1.01 per share next year, which means the company should continue to be able to cover its $0.86 annual dividend with an expected future payout ratio of 85.1%.

Power Integrations Stock Down 4.1%

Shares of POWI stock opened at $61.95 on Thursday. The company has a market capitalization of $3.45 billion, a P/E ratio of 206.51 and a beta of 1.58. Power Integrations has a 12-month low of $30.86 and a 12-month high of $91.18. The firm has a 50-day moving average price of $74.56 and a 200 day moving average price of $61.89.

Power Integrations (NASDAQ:POWI) last issued its quarterly earnings data on Wednesday, August 5th. The semiconductor company reported $0.37 earnings per share for the quarter, topping the consensus estimate of $0.32 by $0.05. The firm had revenue of $118.94 million for the quarter, compared to analysts’ expectations of $117.44 million. Power Integrations had a net margin of 3.72% and a return on equity of 5.34%. The company’s quarterly revenue was up 2.6% compared to the same quarter last year. During the same period in the prior year, the firm earned $0.35 earnings per share. As a group, research analysts expect that Power Integrations will post 0.76 earnings per share for the current year.

Key Headlines Impacting Power Integrations

Here are the key news stories impacting Power Integrations this week:

• Positive Sentiment: Q2 earnings and revenue exceeded expectations. Power Integrations reported adjusted earnings of $0.37 per share, above the $0.32 consensus estimate and up from $0.35 a year earlier. Revenue increased 2.6% year over year to $118.94 million, topping expectations of $117.44 million. Power Integrations Q2 Earnings and Revenues Beat Estimates
• Positive Sentiment: Inventory conditions improved. Reports on the quarter highlighted improving inventory levels, a development that could support future shipments and reduce supply-chain pressure. Power Integrations Q2 Beats on Revenue, Inventory Levels Improve
• Positive Sentiment: New 2,200-volt GaN technology may expand long-term opportunities. Power Integrations demonstrated what it called the world’s first 2,200 V gallium-nitride technology for next-generation high-voltage power systems, potentially strengthening its technology position in industrial and power-conversion markets. Power Integrations Demonstrates 2200 V GaN Technology
• Neutral Sentiment: Third-quarter revenue guidance is broadly in line. Management forecast revenue of $122 million to $130 million, compared with analyst expectations of $125.6 million. The lack of clearly stronger guidance may limit enthusiasm following the earnings beat.
• Neutral Sentiment: Shareholders will receive another dividend. Power Integrations declared a quarterly dividend of $0.215 per share, payable September 30 to investors of record August 31. The annualized payout is $0.86 per share, implying a yield of approximately 1.4%; the ex-dividend date is August 31.
• Negative Sentiment: Valuation leaves little room for disappointment. With a reported price-to-earnings ratio above 200 and modest revenue growth, investors may be demanding faster growth or more optimistic guidance. That valuation pressure could outweigh the quarterly earnings beat.

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.