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Earnings To Watch: Microchip Technology (MCHP) Reports Q1 Results Tomorrow


Kayode Omotosho /
2022/08/01 5:05 am EDT
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Analog chipmaker Microchip Technology (NASDAQ:MCHP) will be reporting earnings tomorrow after market hours. Here's what to expect.

Last quarter Microchip Technology reported revenues of $1.84 billion, up 25.7% year on year, beating analyst revenue expectations by 1.4%. It was a strong quarter for the company, with a beat on the bottom line and a very optimistic guidance for the next quarter.

Is Microchip Technology buy or sell heading into the earnings? Read our full analysis here, it's free.

This quarter analysts are expecting Microchip Technology's revenue to grow 24.3% year on year to $1.95 billion, improving on the 19.8% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $1.34 per share.

Microchip Technology Total Revenue

Majority of analysts covering the company have reconfirmed their estimates over the last thirty days, suggesting they are expecting the business to stay the course heading into the earnings. The company has a history of exceeding Wall St's expectations, beating revenue estimates every single time over the past two years on average by 1.19%.

Looking at Microchip Technology's peers in the analog semiconductors segment, some of them have already reported Q1 earnings results, giving us a hint of what we can expect. NXP Semiconductors delivered top-line growth of 27.5% year on year, beating analyst estimates by 1.43% and Texas Instruments reported revenues up 13.7% year on year, exceeding estimates by 12.1%. NXP Semiconductors was flat on the results, and Texas Instruments was up 1.43%. Read our full analysis of NXP Semiconductors's results here and Texas Instruments's results here.

There has been positive sentiment among investors in the analog semiconductors segment, with the stocks up on average 19.8% over the last month. Microchip Technology is up 22.6% during the same time, and is heading into the earnings with analyst price target of $82.6, compared to share price of $68.85.

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The author has no position in any of the stocks mentioned.