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Power integration misses sales target, less guidance on smartphone weaknesses

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chip maker power integration (POWI) beat Wall Street’s earnings target for the second quarter late Thursday but missed out on a sale. It also provided disappointing third-quarter guidance, citing weak Chinese smartphone sales. POWI shares fell in extended trading.

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The San Jose, California-based company earned $1.03 per share in adjusted June quarter sales of $184 million. Analysts polled by FactSet expected earnings per share of 98 cents on sales of $190.2 million. On a year-over-year basis, Power Integration’s earnings increased 24%, while sales grew 2%.

For the current quarter, Power Integrations forecast revenue of $165 million. But analysts were seeking $198.5 million in third-quarter sales. In the same quarter last year, Power Integrations generated $176.8 million in revenue.

“Our second quarter revenue and third quarter outlook reflect a moderation in Chinese smartphone customers as well as broader macroeconomic headwinds,” Chief Executive Balu Balakrishnan said in a news release.

“Despite weak near-term demand outlook, we continue to make great progress on long-term growth initiatives such as automotive, motor drives, and our products incorporating energy-efficient, proprietary GaN (gallium nitride),” he added. Let’s expand our portfolio of technology.”

POWI Stock Falls After Report

In today’s trading hours on the stock market, POWI stock fell 1.4% to 84. During the regular session on Thursday, POWI stock closed 1.3% higher at 85.17.

Power integration creates semiconductors for high voltage power conversion.

According to IBD Stock Checkup, POWI stock is ranked 12th out of 34 stocks in IBD’s fabless semiconductor industry group. It has an IBD overall rating of 82 out of 99. IBD’s overall rating combines five different proprietary ratings into one easy-to-use rating. The best growth stocks have a composite rating of 90 or better.

follow patrick setz on twitter @IBD_PSeitz For more stories on consumer technology, software and semiconductor stocks.

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