Analog chip maker Microchip Technology (NASDAQ:) will report results tomorrow after the market closes. Here’s what you need to know.
Microchip Technology beat analysts’ revenue expectations last quarter, reporting revenue of $1.77 billion, down 18.6% year-over-year. It was a weak quarter for the company, with disappointing revenue guidance for the next quarter and increasing inventory levels.
Is Microchip Technology a profitable buy or sell? Find out by reading the original article on StockStory, it’s free..
For the quarter, analysts expect Microchip Technology’s revenue to decline 39.9% year over year to $1.34 billion, a reversal from the 21.1% growth recorded in the same quarter last year. Adjusted earnings are expected to be $0.57 per share.
Most analysts covering the company have reiterated their estimates over the past 30 days, suggesting they expect the business to continue on its earnings path. Microchip Technology has missed Wall Street earnings forecasts twice in the last two years.
Looking at Microchip Technology’s competitors in the analog semiconductor space, several of them have already reported their first quarter results, giving us a hint of what we can expect. Impinj’s revenue fell 10.6% year over year, beating analysts’ expectations by 4.4%, and OH Semiconductor (NASDAQ:) reported a 4.9% decline in revenue, in line with consensus estimates. Impinj shares rose 28.8% in trading, while ON Semiconductor shares also rose 3.1%.
Read the full analysis of Impinj and ON Semiconductor results on StockStory.
Investors in the analog semiconductor segment are confidently heading toward earnings, with stock prices unchanged last month. Microchip Technology shares are up 2.9% over the same period and are approaching earnings, with an average analyst price target of $93.7 (versus the current share price of $91.7).
remove advertising
.