Can POWI maintain its EPS growth into Q1 2025?

**Power Integrations (POWI) is likely to face challenges in maintaining its EPS growth into Q1 2025**, based on several indicators suggesting potential hurdles:

1. **Economic Uncertainty and Inventory Levels**: The company's inventory levels remain significantly above target, and there is a rise in sequentially lower revenues. This suggests that POWI may struggle to optimize its inventory management and sustain revenue growth.
2. **Revenue Projection Miss**: Although POWI projects a 15% year-over-year growth in revenue for Q1 2025, the company's track record shows a slight decline in revenue compared to estimates and previous years. This recent trend of missing revenue estimates could persist, impacting EPS growth.
3. **Market Sentiment and Outlook**: The overall market sentiment is mixed, with positive expectations for growth in 2025 but cautionary notes about demand outlook and trade policy uncertainty. These factors can influence POWI's financial performance and EPS growth.
4. **Historical Performance**: POWI's recent past performance shows fluctuations in revenue and net income, with a reported $91.7 million revenue for Q1 2024, slightly below the estimated $89.95 million and a decrease from the previous year's $106.3 million. This historical variability suggests that maintaining EPS growth could be challenging.

In conclusion, while POWI has positive growth projections, the company's current inventory situation, recent revenue trends, and uncertain market conditions suggest that maintaining EPS growth into Q1 2025 might be difficult. The company's strategic focus on GaN adoption and industrial expansion could provide growth opportunities, but they may not immediately translate to EPS growth due to operational and market-related challenges.