MCHP

Microchip Technology Inc (NASDAQ:MCHP) on Thursday reported upbeat second-quarter financial results and issued third-quarter guidance with its midpoint below estimates.

Microchip Technology reported quarterly earnings of 97 cents per share which beat the analyst consensus estimate of 93 cents per share. The company reported quarterly sales of $1.622 billion which beat the analyst consensus estimate of $1.607 billion.

Microchip Technology said it sees third-quarter adjusted earnings of 87 cents-95 cents per share, versus market estimates of 94 cents per share. The company sees sales of $1.573 billion-$1.638 billion, versus estimates of $1.624 billion.

Eric Bjornholt, Microchip’s Corporate Senior Vice President and Chief Financial Officer, said, “Our September quarter results reflect ongoing operational improvements, with non-GAAP operating expenses growing well below net sales and supporting higher profitability. We believe our existing manufacturing footprint enables us to grow with modest incremental capital investment, and we remain focused on strengthening our balance sheet while making targeted investments that accelerate our product roadmap.”

Microchip shares fell 2.1% to $63.50 in pre-market trading.

These analysts made changes to their price targets on Microchip following earnings announcement.

• Rosenblatt analyst Kevin Cassidy maintained the stock with a Buy and lowered the price target from $120 to $115.
• Needham analyst N. Quinn Bolton maintained the stock with a Buy and lowered the price target from $120 to $85.
• Cantor Fitzgerald analyst Matthew Prisco maintained the stock with an Overweight rating and cut the price target from $125 to $100.

Considering buying MCHP stock? Here’s what analysts think:

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