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Microchip Technology (MCHP) Reports Earnings Tomorrow. What To Expect


Petr Huřťák /
2023/02/01 4:24 am EST

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

Last quarter Microchip Technology reported revenues of $2.07 billion, up 25.6% year on year, in line with analyst expectations. It was a decent quarter for the company, with very optimistic guidance for the next quarter but an increase in 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 22.4% year on year to $2.15 billion, slowing down from the 29.9% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $1.54 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 0.67%.

Looking at Microchip Technology's peers in the analog semiconductors segment, some of them have already reported Q3 earnings results, giving us a hint of what we can expect. NXP Semiconductors delivered top-line growth of 8.98% year on year, beating analyst estimates by 0.48% and Sensata Technologies reported revenues up 8.56% year on year, exceeding estimates by 1.66%. NXP Semiconductors traded down 2.04% on the results, and Sensata was flat on the results. Read our full analysis of NXP Semiconductors's results here and Sensata Technologies's results here.

There has been positive sentiment among investors in the analog semiconductors segment, with the stocks up on average 19.1% over the last month. Microchip Technology is up 12.7% during the same time, and is heading into the earnings with analyst price target of $83.75, compared to share price of $77.90.

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