Microchip Technology (NASDAQ:MCHP) Updates Q1 Earnings Guidance

Microchip Technology (NASDAQ:MCHP) updated its first quarter earnings guidance on Monday. The company provided EPS guidance of $0.48-0.56 for the period, compared to the consensus EPS 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.

Microchip Technology Stock Performance

MCHP stock traded down $0.07 during trading on Wednesday, reaching $91.99. 4,823,155 shares of the company’s stock were exchanged, compared to its average volume of 5,636,225. Microchip Technology has a 1-year low of $68.75 and a 1-year high of $96.14. The firm has a market cap of $49.71 billion, a PE ratio of 21.49, a P/E/G ratio of 2.79 and a beta of 1.60. The company’s fifty day moving average price is $88.45 and its 200-day moving average price is $85.37. The company has a quick ratio of 0.58, a current ratio of 0.98 and a debt-to-equity ratio of 0.57.

Microchip Technology (NASDAQ:MCHP) last announced its earnings results on Monday, May 6th. The semiconductor company reported $0.57 earnings per share (EPS) for the quarter, meeting analysts’ consensus estimates of $0.57. Microchip Technology had a net margin of 27.59% and a return on equity of 45.59%. The firm had revenue of $1.33 billion during the quarter, compared to analyst estimates of $1.33 billion. During the same quarter in the prior year, the firm posted $1.56 EPS. Microchip Technology’s revenue was down 40.6% compared to the same quarter last year. On average, research analysts expect that Microchip Technology will post 4.64 EPS for the current fiscal year.

Microchip Technology Increases Dividend

The firm also recently announced a quarterly dividend, which will be paid on Wednesday, June 5th. Investors of record on Wednesday, May 22nd will be issued a $0.452 dividend. This is an increase from Microchip Technology’s previous quarterly dividend of $0.45. This represents a $1.81 dividend on an annualized basis and a dividend yield of 1.97%. The ex-dividend date is Tuesday, May 21st. Microchip Technology’s payout ratio is presently 42.06%.

Wall Street Analysts Forecast Growth

A number of equities research analysts have recently commented on the company. KeyCorp increased their price objective on Microchip Technology from $90.00 to $110.00 and gave the company an overweight rating in a research report on Tuesday. Piper Sandler reiterated a neutral rating and issued a $90.00 price target (up previously from $80.00) on shares of Microchip Technology in a research report on Tuesday. Citigroup lifted their price target on Microchip Technology from $100.00 to $104.00 and gave the stock a buy rating in a research note on Tuesday. Needham & Company LLC raised their target price on shares of Microchip Technology from $90.00 to $100.00 and gave the stock a buy rating in a report on Tuesday. Finally, Evercore ISI began coverage on shares of Microchip Technology in a report on Tuesday, April 16th. They set an outperform rating and a $106.00 price target on the stock. Six analysts have rated the stock with a hold rating and twelve have given a buy rating to the company’s stock. According to MarketBeat.com, the stock currently has an average rating of Moderate Buy and a consensus target price of $98.47.

Insider Buying and Selling at Microchip Technology

In other news, CFO James Eric Bjornholt sold 1,970 shares of the stock in a transaction on Friday, February 23rd. The shares were sold at an average price of $83.90, for a total transaction of $165,283.00. Following the transaction, the chief financial officer now owns 32,893 shares in the company, valued at approximately $2,759,722.70. The sale was disclosed in a document filed with the SEC, which is accessible through the SEC website. Corporate 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.