Microchip Technology Earnings: What To Look For From MCHP

Kayode Omotosho /
2023/08/02 4:17 am EDT

Analog chipmaker Microchip Technology (NASDAQ:MCHP) will be reporting results tomorrow after the bell. Here's what you need to know.

Last quarter Microchip Technology reported revenues of $2.23 billion, up 21.1% year on year, in line with analyst expectations. It was a mixed quarter for the company, with strong sales guidance for the next quarter but an increase in its inventory levels.

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 16.6% year on year to $2.29 billion, slowing down from the 25.1% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $1.64 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 0.7%.

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's revenues decreased 0.39% year on year, beating analyst estimates by 2.88% and Impinj reported revenues up 43.8% year on year, exceeding estimates by 1.17%. NXP Semiconductors traded up 1% on the results, Impinj was down 19.4%. Read our full analysis of NXP Semiconductors's results here and Impinj's results here.

There has been positive sentiment among investors in the analog semiconductors segment, with the stocks up on average 4.05% over the last month. Microchip Technology is up 3.42% during the same time, and is heading into the earnings with analyst price target of $98.8, compared to share price of $91.45.

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