Semiconductor designer Power Integrations (NASDAQ:POWI) will be announcing earnings results tomorrow after market close. Here’s what investors should know.

Power Integrations beat analysts’ revenue expectations by 1.1% last quarter, reporting revenues of $106.2 million, down 13.8% year on year. It was a mixed quarter for the company, with a significant improvement in its inventory levels but underwhelming revenue guidance for the next quarter.

Is Power Integrations a buy or sell going into earnings? Read our full analysis here, it’s free.

This quarter, analysts are expecting Power Integrations’s revenue to decline 8.5% year on year to $114.8 million, improving from the 21.7% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.36 per share.

The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Power Integrations has missed Wall Street’s revenue estimates four times over the last two years.

Looking at Power Integrations’s peers in the analog semiconductors segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Impinj delivered year-on-year revenue growth of 46.4%, beating analysts’ expectations by 2.5%, and Monolithic Power Systems reported revenues up 30.6%, topping estimates by 3.3%. Impinj’s stock price was unchanged after the results, and Monolithic Power Systems’s price followed a similar reaction.

Read our full analysis of Impinj’s results here and Monolithic Power Systems’s results here.

Stocks--especially those trading at higher multiples--had a strong end of 2023, but 2024 has seen periods of volatility. Mixed inflation signals have led to uncertainty around rate cuts, and while some of the analog semiconductors stocks have fared somewhat better, they have not been spared, with share prices down 6.3% on average over the last month. Power Integrations’s stock price was unchanged during the same time and is heading into earnings with an average analyst price target of $80.20 (compared to the current share price of $63.23).

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