Microchip Technology (NASDAQ:MCHP) Releases Q1 Earnings Guidance

Microchip Technology (NASDAQ:MCHP) updated its first quarter earnings guidance on Monday. The company provided earnings per share (EPS) guidance of $0.48-0.56 for the period, compared to the consensus estimate of $0.58. The company issued revenue guidance of $1.22-1.26 billion, compared to the consensus revenue estimate of $1.33 billion. Microchip Technology also updated its Q1 2025 guidance to 0.480-0.560 EPS.

Microchip Technology Price Performance

Shares of NASDAQ:MCHP traded down $0.07 during midday trading on Wednesday, reaching $91.99. 4,823,155 shares of the company were exchanged, compared to its average volume of 5,636,225. The company has a current ratio of 0.98, a quick ratio of 0.58 and a debt-to-equity ratio of 0.57. The stock has a market cap of $49.71 billion, a PE ratio of 21.49, a price-to-earnings-growth ratio of 2.79 and a beta of 1.60. The business’s fifty day moving average is $88.45 and its two-hundred day moving average is $85.37. Microchip Technology has a one year low of $68.75 and a one year high of $96.14.

Microchip Technology (NASDAQ:MCHP) last issued its quarterly earnings data on Monday, May 6th. The semiconductor company reported $0.57 earnings per share for the quarter, meeting analysts’ consensus estimates of $0.57. Microchip Technology had a return on equity of 45.59% and a net margin of 27.59%. The firm had revenue of $1.33 billion during the quarter, compared to analyst estimates of $1.33 billion. During the same quarter last year, the business posted $1.56 earnings per share. The business’s quarterly revenue was down 40.6% compared to the same quarter last year. As a group, analysts predict that Microchip Technology will post 4.64 earnings per share for the current year.

Microchip Technology Increases Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Wednesday, June 5th. Shareholders of record on Wednesday, May 22nd will be paid a $0.452 dividend. This is an increase from Microchip Technology’s previous quarterly dividend of $0.45. The ex-dividend date is Tuesday, May 21st. This represents a $1.81 dividend on an annualized basis and a yield of 1.97%. Microchip Technology’s payout ratio is presently 42.06%.

Wall Street Analyst Weigh In

A number of research analysts recently weighed in on MCHP shares. Mizuho raised their target price on shares of Microchip Technology from $82.00 to $85.00 and gave the company a neutral rating in a report on Tuesday. KeyCorp lifted their price objective on shares of Microchip Technology from $90.00 to $110.00 and gave the stock an overweight rating in a research note on Tuesday. Susquehanna upped their target price on shares of Microchip Technology from $100.00 to $105.00 and gave the company a positive rating in a research report on Tuesday. Evercore ISI assumed coverage on Microchip Technology in a research report on Tuesday, April 16th. They issued an outperform rating and a $106.00 price target for the company. Finally, Truist Financial boosted their price objective on Microchip Technology from $93.00 to $96.00 and gave the stock a buy rating in a research note on Tuesday. Six equities research analysts have rated the stock with a hold rating and twelve have given a buy rating to the stock. According to MarketBeat, the company has an average rating of Moderate Buy and an average price target of $98.47.

Insider Activity

In related news, CFO James Eric Bjornholt sold 1,970 shares of the firm’s stock in a transaction dated Friday, February 23rd. The stock was sold at an average price of $83.90, for a total transaction of $165,283.00. Following the sale, the chief financial officer now owns 32,893 shares of the company’s stock, valued at $2,759,722.70. The sale was disclosed in a filing with the SEC, which is available through the SEC website. Company insiders own 2.07% of the company’s stock.

About Microchip Technology

Microchip Technology Incorporated develops, manufactures, and sells smart, connected, and secure embedded control solutions in the Americas, Europe, and Asia. The company offers general purpose 8-bit, 16-bit, and 32-bit microcontrollers; 32-bit embedded mixed-signal microprocessors; and specialized microcontrollers for automotive, industrial, computing, communications, lighting, power supplies, motor control, human machine interface, security, wired connectivity, and wireless connectivity applications.