Power Integrations’ first quarter results were met with a negative market reaction, despite the company delivering revenue in line with Wall Street expectations and adjusted earnings surpassing consensus. Management attributed the quarter’s performance to robust demand in both the Consumer and Computer segments, highlighting double-digit growth in appliances, TVs, and game consoles. CEO Balu Balakrishnan noted, “The primary drivers of growth in Consumer were appliances and air conditioning, which account for the bulk of our Consumer category.” Management also acknowledged that front-loading of appliance shipments to the U.S. ahead of tariffs likely contributed additional revenue, though they cautioned that this impact was difficult to quantify precisely.
Is now the time to buy POWI? Find out in our full research report (it’s free).
Power Integrations (POWI) Q1 CY2025 Highlights:
- Revenue: $105.5 million vs analyst estimates of $105.5 million (15.1% year-on-year growth, in line)
- Adjusted EPS: $0.31 vs analyst estimates of $0.28 (8.9% beat)
- Adjusted EBITDA: $23 million vs analyst estimates of $24.6 million (21.8% margin, 6.5% miss)
- Revenue Guidance for Q2 CY2025 is $115 million at the midpoint, roughly in line with what analysts were expecting
- Operating Margin: 6.4%, up from 0.5% in the same quarter last year
- Inventory Days Outstanding: 325, up from 314 in the previous quarter
- Market Capitalization: $3.30 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions Power Integrations’s Q1 Earnings Call
- Ross Seymore (Deutsche Bank) asked about the timing of industrial design win ramps. CEO Balu Balakrishnan explained a short-term delay was specific to one customer, but overall ramp expectations remain on track for the year.
- David Williams (The Benchmark Company) inquired about automotive design win performance. Balakrishnan noted they are exceeding initial expectations in design wins, though longer-term electric vehicle forecasts have moderated.
- Tore Svanberg (Stifel) questioned whether consumer strength was due to tariff pre-shipping. CFO Sandeep Nayyar confirmed a few million dollars in Q1 revenue were likely pulled forward, mainly in major appliances.
- Christopher Rolland (Susquehanna) asked about second-half demand and order book trends. Balakrishnan said current bookings look normal, but the impact of tariffs remains uncertain and will be monitored.
- Gus Richard (Northland Capital Markets) probed on geographic demand shifts and manufacturing migration. Balakrishnan observed increasing manufacturing shifting from China to India and Vietnam, contributing to growth in those regions.
Catalysts in Upcoming Quarters
In coming quarters, the StockStory team will be monitoring (1) the pace of industrial and automotive design win ramps and associated revenue contributions, (2) the normalization of consumer demand after tariff-related shipment pull-ins, and (3) ongoing adoption of GaN-based products across server, energy, and automotive applications. Developments in trade policy and inventory management will also be key performance indicators.
Power Integrations currently trades at $58.70, in line with $59.04 just before the earnings. In the wake of this quarter, is it a buy or sell? See for yourself in our full research report (it’s free).
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