Microchip Technology (NASDAQ:MCHP) Announces Quarterly Earnings Results, Beats Estimates By $0.03 EPS

by · The Markets Daily

Microchip Technology (NASDAQ:MCHP – Get Free Report) announced its earnings results on Tuesday. The semiconductor company reported $0.46 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.43 by $0.03, Briefing.com reports. Microchip Technology had a return on equity of 28.33% and a net margin of 20.80%. The business had revenue of $1.16 billion during the quarter, compared to analyst estimates of $1.15 billion. During the same period last year, the company earned $1.54 EPS. Microchip Technology’s revenue for the quarter was down 48.4% compared to the same quarter last year. Microchip Technology updated its Q3 guidance to $0.25-0.35 EPS and its Q3 2025 guidance to 0.250-0.350 EPS.

Microchip Technology Stock Performance

Shares of NASDAQ:MCHP traded up $0.59 during midday trading on Thursday, reaching $74.34. 7,232,130 shares of the company traded hands, compared to its average volume of 5,966,145. 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 has a 12 month low of $71.76 and a 12 month high of $100.57. The firm has a market capitalization of $39.88 billion, a price-to-earnings ratio of 51.99 and a beta of 1.53. The firm’s fifty day moving average price is $77.05 and its two-hundred day moving average price is $85.12.

Microchip Technology Increases Dividend

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

Wall Street Analysts Forecast Growth

MCHP has been the subject of several research analyst reports. Piper Sandler lowered their price objective on Microchip Technology from $100.00 to $85.00 and set an “overweight” rating for the company in a research report on Wednesday. Bank of America lowered Microchip Technology from a “buy” rating to a “neutral” rating and lowered their price objective for the stock from $110.00 to $90.00 in a research report on Friday, August 2nd. JPMorgan Chase & Co. lowered their price objective on Microchip Technology from $110.00 to $100.00 and set an “overweight” rating for the company in a research report on Friday, August 2nd. TD Cowen lowered their price objective on Microchip Technology from $80.00 to $70.00 and set a “hold” rating for the company in a research report on Wednesday. Finally, Needham & Company LLC decreased their target price on Microchip Technology from $96.00 to $85.00 and set a “buy” rating for the company in a research report on Wednesday. Six research analysts have rated the stock with a hold rating and fourteen have assigned a buy rating to the stock. Based on data from MarketBeat.com, Microchip Technology presently has an average rating of “Moderate Buy” and a consensus target price of $92.00.

Read Our Latest Research Report on MCHP

Insider Activity at Microchip Technology

In related news, CFO James Eric Bjornholt sold 2,154 shares of the business’s stock in a transaction on Friday, August 23rd. The stock was sold at an average price of $81.50, for a total transaction of $175,551.00. Following the sale, the chief financial officer now directly owns 33,257 shares in the company, valued at approximately $2,710,445.50. The trade was a 0.00 % decrease in their position. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. 2.10% of the stock is currently owned by corporate insiders.

Microchip Technology Company Profile

(Get Free Report)

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.

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