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Investing.com - Power Integrations (NASDAQ:POWI) shares plunged 12.3% on Wednesday after the semiconductor company issued fourth-quarter revenue guidance significantly below analyst expectations, despite reporting third-quarter results that met Wall Street forecasts.
The high-voltage power conversion technology provider reported third-quarter adjusted earnings of $0.36 per share, matching analyst estimates, on revenue of $118.9 million, which was slightly below the consensus of $119.57 million but represented a 3% increase YoY. While the company managed to deliver in-line results for the current quarter, investors focused on its disappointing outlook.
For the fourth quarter, Power Integrations expects revenue between $100 million and $105 million, substantially below analyst expectations of $116.4 million. The weak guidance overshadowed the company’s positive industrial segment performance, which saw 20% YoY growth in the third quarter.
"Our industrial business remains on track for strong growth in 2025 after a 20 percent year-over-year increase in the third quarter, while orders for consumer appliances continue to be soft after accelerated shipments earlier in the year ahead of U.S. tariffs," said CEO Jennifer Lloyd.
The company generated $29.9 million in operating cash flow during the quarter and repurchased 919,000 shares for $42.4 million, completing its repurchase authorization. Power Integrations also announced a dividend increase to $0.215 per share for each quarter of 2026, up from the current $0.21 per share.
Despite the challenging outlook, management emphasized its focus on secular growth opportunities in high voltage applications, including GaN technology, grid modernization, electric transportation, and data center infrastructure.
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