Microchip Technology (NASDAQ:MCHP) Releases Q1 Earnings Guidance

Microchip Technology (NASDAQ:MCHP) issued an update on its first quarter earnings guidance on Monday morning. The company provided earnings per share (EPS) guidance of $0.48-0.56 for the period, compared to the consensus estimate of $0.58. The company issued revenue guidance of $1.22-1.26 billion, compared to the consensus revenue estimate of $1.33 billion. Microchip Technology also updated its Q1 2025 guidance to 0.480-0.560 EPS.

Wall Street Analysts Forecast Growth

MCHP has been the subject of a number of research analyst reports. TD Cowen upped their price objective on shares of Microchip Technology from $80.00 to $90.00 and gave the stock a hold rating in a research report on Tuesday. Wolfe Research upgraded Microchip Technology from a peer perform rating to an outperform rating and set a $105.00 price objective on the stock in a research report on Thursday, January 18th. Piper Sandler reissued a neutral rating and set a $90.00 price target (up from $80.00) on shares of Microchip Technology in a research note on Tuesday. The Goldman Sachs Group lifted their target price on shares of Microchip Technology from $77.00 to $88.00 and gave the stock a neutral rating in a research report on Tuesday. Finally, Citigroup lifted their price target on shares of Microchip Technology from $100.00 to $104.00 and gave the stock a buy rating in a report on Tuesday. Six investment analysts have rated the stock with a hold rating and twelve have given a buy rating to the company’s stock. According to data from MarketBeat, the company currently has a consensus rating of Moderate Buy and an average price target of $98.47.

Microchip Technology Price Performance

MCHP stock traded up $0.04 during mid-day trading on Thursday, reaching $92.03. 394,126 shares of the company traded hands, compared to its average volume of 5,576,779. Microchip Technology has a 52-week low of $68.75 and a 52-week high of $96.14. The company has a market capitalization of $49.73 billion, a P/E ratio of 21.38, a P/E/G ratio of 2.79 and a beta of 1.60. The company has a debt-to-equity ratio of 0.57, a current ratio of 0.98 and a quick ratio of 0.58. The company has a fifty day moving average price of $88.45 and a 200-day moving average price of $85.37.

Microchip Technology (NASDAQ:MCHP) last posted its quarterly earnings data on Monday, May 6th. The semiconductor company reported $0.57 earnings per share (EPS) for the quarter, meeting the consensus estimate of $0.57. Microchip Technology had a return on equity of 45.59% and a net margin of 27.59%. The company had revenue of $1.33 billion during the quarter, compared to analyst estimates of $1.33 billion. During the same quarter last year, the company earned $1.56 earnings per share. The firm’s quarterly revenue was down 40.6% on a year-over-year basis. As a group, analysts anticipate that Microchip Technology will post 4.64 earnings per share for the current year.

Microchip Technology Increases Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Wednesday, June 5th. Investors of record on Wednesday, May 22nd will be issued a dividend of $0.452 per share. This represents a $1.81 dividend on an annualized basis and a dividend yield of 1.96%. This is a boost from Microchip Technology’s previous quarterly dividend of $0.45. The ex-dividend date of this dividend is Tuesday, May 21st. Microchip Technology’s dividend payout ratio (DPR) is currently 42.06%.

Insiders Place Their Bets

In other Microchip Technology news, CFO James Eric Bjornholt sold 1,970 shares of the company’s stock in a transaction dated Friday, February 23rd. The shares were sold at an average price of $83.90, for a total transaction of $165,283.00. Following the completion of the sale, the chief financial officer now directly owns 32,893 shares in the company, valued at $2,759,722.70. The transaction was disclosed in a document filed with the SEC, which is accessible through this link. Insiders own 2.07% of the company’s stock.

About Microchip Technology

Microchip Technology Incorporated develops, manufactures, and sells smart, connected, and secure embedded control solutions in the Americas, Europe, and Asia. The company offers general purpose 8-bit, 16-bit, and 32-bit microcontrollers; 32-bit embedded mixed-signal microprocessors; and specialized microcontrollers for automotive, industrial, computing, communications, lighting, power supplies, motor control, human machine interface, security, wired connectivity, and wireless connectivity applications.