Power Integrations Q2 revenue beats, helped by growth in industrial markets
POWI•Outlook and demand drivers
Power Integrations expects Q3 revenue between $122 mln and $130 mln.
The company sees Q3 GAAP gross margin between 53.3% and 54.4%.
It said demand is being driven by renewable energy, grid infrastructure and AI data centers.
The company said continued growth in industrial markets contributed to Q2 results, along with lower inventories in the distribution channel and on its balance sheet. CEO said investment in renewable energy, grid infrastructure and AI data centers is supporting customer demand.
The current average analyst rating on the shares is buy, with 3 strong buy or buy, 1 hold and no sell or strong sell recommendations.
The average consensus recommendation for the semiconductors peer group is buy.
Wall Street's median 12-month price target for Power Integrations, Inc. is $85.00, about 31.6% above its August 4 closing price of $64.57.
The stock recently traded at 39 times the next 12-month earnings vs. a P/E of 49 three months ago.
