Microchip Technology (NASDAQ:MCHP) Issues Q1 2025 Earnings Guidance

Microchip Technology (NASDAQ:MCHP) issued an update on its first quarter 2025 earnings guidance on Monday morning. The company provided earnings per share (EPS) guidance of 0.480-0.560 for the period, compared to the consensus estimate of 0.580. The company issued revenue guidance of $1.2 billion-$1.3 billion, compared to the consensus revenue estimate of $1.3 billion. Microchip Technology also updated its Q1 guidance to $0.48-0.56 EPS.

Analyst Ratings Changes

Several analysts have issued reports on MCHP shares. Needham & Company LLC upped their target price on Microchip Technology from $90.00 to $100.00 and gave the company a buy rating in a report on Tuesday. Citigroup upped their price objective on shares of Microchip Technology from $100.00 to $104.00 and gave the company a buy rating in a report on Tuesday. Stifel Nicolaus lifted their target price on shares of Microchip Technology from $98.00 to $102.00 and gave the stock a buy rating in a research note on Wednesday, May 1st. Evercore ISI initiated coverage on shares of Microchip Technology in a research note on Tuesday, April 16th. They issued an outperform rating and a $106.00 price target for the company. Finally, Mizuho lifted their price target on shares of Microchip Technology from $82.00 to $85.00 and gave the company a neutral rating in a research report on Tuesday. Six research analysts have rated the stock with a hold rating and twelve have given a buy rating to the company. According to data from MarketBeat, Microchip Technology has a consensus rating of Moderate Buy and a consensus target price of $98.47.

Microchip Technology Trading Down 0.1 %

Microchip Technology stock traded down $0.07 during midday trading on Wednesday, reaching $91.99. 4,823,155 shares of the stock traded hands, 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 firm 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 company has a 50-day simple moving average of $88.45 and a two-hundred day simple moving average of $85.37. Microchip Technology has a 12-month low of $68.75 and a 12-month high of $96.14.

Microchip Technology (NASDAQ:MCHP) last announced 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. The firm had revenue of $1.33 billion during the quarter, compared to analysts’ expectations of $1.33 billion. Microchip Technology had a net margin of 27.59% and a return on equity of 45.59%. The business’s quarterly revenue was down 40.6% compared to the same quarter last year. During the same quarter in the previous year, the business posted $1.56 earnings per share. Research analysts expect that Microchip Technology will post 4.64 earnings per share for the current fiscal year.

Microchip Technology Increases Dividend

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

Insider Buying and Selling

In related news, CFO James Eric Bjornholt sold 1,970 shares of the company’s stock in a transaction that occurred on Friday, February 23rd. The shares were sold at an average price of $83.90, for a total transaction of $165,283.00. Following the sale, the chief financial officer now directly owns 32,893 shares in the company, valued at $2,759,722.70. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this link. 2.07% of the stock is currently owned by insiders.

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.