Yahoo Finance Microchip Technology (MCHP) Reports Earnings Tomorrow: What To Expect
Analog chipmaker Microchip Technology (NASDAQ:MCHP) will be reporting earnings tomorrow after the bell. Here's what to look for.
Microchip Technology missed analysts' revenue expectations by 1.2% last quarter, reporting revenues of $1.33 billion, down 40.6% year on year. It was a weak quarter for the company, with underwhelming revenue guidance for the next quarter and a decline in its operating margin.
Is Microchip Technology a buy or sell going into earnings? Read our full analysis here, it's free.
This quarter, analysts are expecting Microchip Technology's revenue to decline 45.7% year on year to $1.24 billion, a reversal from the 16.6% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.52 per share.
The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Microchip Technology has missed Wall Street's revenue estimates three times over the last two years.
Looking at Microchip Technology's peers in the analog semiconductors segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Impinj delivered year-on-year revenue growth of 19.2%, beating analysts' expectations by 5.2%, and Sensata Technologies reported a revenue decline of 2.5%, in line with consensus estimates. Impinj traded up 4.6% following the results while Sensata Technologies's stock price was unchanged.
Read our full analysis of Impinj's results here and Sensata Technologies's results here.
Growth stocks have been quite volatile since the start of 2024, and while some of the analog semiconductors stocks have fared somewhat better, they have not been spared, with share prices down 7.3% on average over the last month. Microchip Technology is down 4.4% during the same time and is heading into earnings with an average analyst price target of $101.6 (compared to the current share price of $88.04).
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