Power Integrations (NASDAQ:POWI) Posts Earnings Results, Beats Estimates By $0.05 EPS

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

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 Stock Performance

Shares of Power Integrations stock traded down $2.35 during trading on Thursday, hitting $59.60. The company’s stock had a trading volume of 470,403 shares, compared to its average volume of 1,018,622. The company has a fifty day simple moving average of $74.56 and a two-hundred day simple moving average of $61.89. The company has a market capitalization of $3.32 billion, a PE ratio of 198.99 and a beta of 1.58. Power Integrations has a 52 week low of $30.86 and a 52 week high of $91.18.

Power Integrations Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Wednesday, September 30th. Stockholders of record on Monday, August 31st will be given a $0.215 dividend. The ex-dividend date of this dividend is Monday, August 31st. This represents a $0.86 dividend on an annualized basis and a dividend yield of 1.4%. Power Integrations’s dividend payout ratio is currently 286.67%.

Insider Buying and Selling at Power Integrations

In other 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 completion of the transaction, the director directly owned 279,516 shares in the company, valued at approximately $24,161,363.04. This trade represents a 30.78% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Also, Director Nicholas Brathwaite sold 6,895 shares of the business’s stock in a transaction that occurred on Wednesday, May 13th. The stock was sold at an average price of $72.41, for a total value of $499,266.95. Following the completion of the sale, the director directly owned 30,609 shares in the company, valued at approximately $2,216,397.69. This represents a 18.38% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Over the last quarter, 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 bought and sold shares of the company. Snyder Capital Management L P raised its stake in shares of Power Integrations by 148.8% in 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 purchasing an additional 1,234,981 shares during the last quarter. Price T Rowe Associates Inc. MD boosted its position in shares of Power Integrations by 1,885.7% during the fourth quarter. Price T Rowe Associates Inc. MD now owns 943,365 shares of the semiconductor company’s stock valued at $33,528,000 after buying an additional 895,857 shares during the last quarter. Wellington Management Group LLP increased its holdings in Power Integrations by 35.7% in the 3rd quarter. Wellington Management Group LLP now owns 2,261,281 shares of the semiconductor company’s stock worth $90,926,000 after buying an additional 595,404 shares in the last quarter. State Street Corp increased its holdings in Power Integrations by 18.0% in the 4th quarter. State Street Corp now owns 3,400,970 shares of the semiconductor company’s stock worth $120,870,000 after buying an additional 518,284 shares in the last quarter. Finally, Squarepoint Ops LLC raised its position in Power Integrations by 843.8% in the 2nd quarter. Squarepoint Ops LLC now owns 519,952 shares of the semiconductor company’s stock worth $29,065,000 after buying an additional 464,858 shares during the last quarter.

Trending Headlines about Power Integrations

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

• Positive Sentiment: Power Integrations reported second-quarter earnings of $0.37 per share, above the $0.32 analyst consensus and up from $0.35 a year earlier. Revenue of $118.94 million also exceeded expectations of $117.44 million and increased 2.6% year over year. Power Integrations Q2 Earnings and Revenues Beat Estimates
• Positive Sentiment: The company demonstrated what it described as the world’s first 2,200-volt gallium nitride technology, potentially positioning POWI to benefit from future high-voltage power systems and next-generation power infrastructure. Power Integrations Demonstrates 2200 V GaN Technology
• Neutral Sentiment: Power Integrations declared a quarterly dividend of $0.215 per share, payable September 30 to shareholders of record August 31. The annualized payout is approximately $0.86 per share, representing a yield of about 1.4%.
• Neutral Sentiment: Third-quarter revenue guidance of $122 million to $130 million brackets the $125.6 million consensus estimate, suggesting expectations were largely maintained rather than materially raised. Power Integrations Q2 Results and Inventory Update
• Negative Sentiment: Stifel Nicolaus and Needham both reduced their POWI price targets to $80, from $95 and $90, respectively. Although both firms retained “buy” ratings and still see roughly 32% upside from the cited share price, the cuts signal more cautious near-term expectations and are likely the main reason the stock has declined.

Analysts Set New Price Targets

Several research analysts have commented on the stock. Deutsche Bank Aktiengesellschaft restated a “hold” rating on shares of Power Integrations in a report on Friday, May 8th. Needham & Company LLC reduced their price target on shares of Power Integrations from $90.00 to $80.00 and set a “buy” rating on the stock in a research report on Thursday. Zacks Research lowered shares of Power Integrations from a “strong-buy” rating to a “hold” rating in a report on Monday, July 20th. Stifel Nicolaus cut their price objective on Power Integrations from $95.00 to $80.00 and set a “buy” rating on the stock in a research report on Thursday. Finally, Susquehanna upped their target price on Power Integrations from $70.00 to $85.00 and gave the stock a “positive” rating in a report on Friday, May 8th. Four investment analysts have rated the stock with a Buy rating, three have issued a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat, the company presently has an average rating of “Hold” and an average target price of $72.67.

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.