Microchip Technology (NASDAQ:MCHP) Issues Q3 Earnings Guidance

Microchip Technology (NASDAQ:MCHP) updated its third quarter earnings guidance on Tuesday. The company provided EPS guidance of $0.25-0.35 for the period, compared to the consensus EPS estimate of $0.46. The company issued revenue guidance of $1.025-1.095 billion, compared to the consensus revenue estimate of $1.18 billion. Microchip Technology also updated its Q3 2025 guidance to 0.250-0.350 EPS.

Analysts Set New Price Targets

A number of brokerages have issued reports on MCHP. TD Cowen decreased their target price on shares of Microchip Technology from $80.00 to $70.00 and set a “hold” rating on the stock in a research report on Wednesday. Truist Financial cut Microchip Technology from a “buy” rating to a “hold” rating and dropped their price objective for the company from $89.00 to $80.00 in a report on Monday, September 23rd. Piper Sandler dropped their price objective on Microchip Technology from $100.00 to $85.00 and set an “overweight” rating for the company in a report on Wednesday. Citigroup dropped their price objective on Microchip Technology from $92.00 to $82.00 and set a “buy” rating for the company in a report on Wednesday. Finally, Mizuho set a $95.00 price objective on Microchip Technology in a report on Friday, October 18th. One research analyst has rated the stock with a sell rating, five have issued a hold rating and fourteen have given a buy rating to the company’s stock. Based on data from MarketBeat, the company currently has an average rating of “Moderate Buy” and an average target price of $92.00.

Microchip Technology Trading Up 0.8 %

Shares of NASDAQ MCHP traded up $0.59 during trading on Thursday, reaching $74.34. The company had a trading volume of 7,232,164 shares, compared to its average volume of 5,966,145. The company’s fifty day moving average price is $77.05 and its 200-day moving average price is $85.12. Microchip Technology has a 12 month low of $71.76 and a 12 month high of $100.57. The stock has a market cap of $39.88 billion, a P/E ratio of 51.99 and a beta of 1.53. The company has a quick ratio of 1.08, a current ratio of 1.94 and a debt-to-equity ratio of 0.96.

Microchip Technology (NASDAQ:MCHP) last announced its quarterly earnings data on Tuesday, November 5th. The semiconductor company reported $0.46 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.43 by $0.03. The company had revenue of $1.16 billion for the quarter, compared to the consensus estimate of $1.15 billion. Microchip Technology had a return on equity of 28.33% and a net margin of 20.80%. The firm’s revenue was down 48.4% compared to the same quarter last year. During the same period in the previous year, the business earned $1.54 EPS. As a group, research analysts expect that Microchip Technology will post 1.73 earnings per share for the current year.

Microchip Technology Increases Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Friday, December 6th. Stockholders of record on Friday, November 22nd will be paid a $0.455 dividend. This represents a $1.82 dividend on an annualized basis and a dividend yield of 2.45%. This is an increase from Microchip Technology’s previous quarterly dividend of $0.45. The ex-dividend date is Friday, November 22nd. Microchip Technology’s payout ratio is currently 126.57%.

Insider Activity

In other news, CFO James Eric Bjornholt sold 2,154 shares of the business’s stock in a transaction dated Friday, August 23rd. The stock was sold at an average price of $81.50, for a total value of $175,551.00. Following the transaction, the chief financial officer now directly owns 33,257 shares of the company’s stock, valued at $2,710,445.50. The trade was a 0.00 % decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. 2.10% of the stock is owned by company insiders.

About Microchip Technology

Microchip Technology Incorporated engages in the development, manufacture, and sale of 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 mixed-signal 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.