Microchip Technology (MCHP) To Report Earnings Tomorrow: Here Is What To Expect

Kayode Omotosho /
2022/11/02 3:50 am EDT

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

Last quarter Microchip Technology reported revenues of $1.96 billion, up 25.1% year on year, in line with analyst expectations. It was a solid quarter for the company, with very optimistic guidance for the next quarter and a meaningful improvement in gross margin.

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This quarter analysts are expecting Microchip Technology's revenue to grow 24.9% year on year to $2.06 billion, in line with the 25.9% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $1.44 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 1.05%.

Looking at Microchip Technology's peers in the analog semiconductors segment, some of them have already reported Q2 earnings results, giving us a hint what we can expect. Texas Instruments delivered top-line growth of 12.8% year on year, beating analyst estimates by 1.9% and ON Semiconductor reported revenues up 25.8% year on year, exceeding estimates by 3.58%. Texas Instruments traded down 4.74% on the results, ON Semiconductor was down 2.09%. Read our full analysis of Texas Instruments's results here and ON Semiconductor's results here.

There has been positive sentiment among investors in the analog semiconductors segment, with the stocks up on average 5.12% over the last month. Microchip Technology is up 1.91% during the same time, and is heading into the earnings with analyst price target of $83.2, compared to share price of $61.86.

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