Microchip Technology (NASDAQ:MCHP) Issues Quarterly Earnings Results, Hits Expectations

Microchip Technology (NASDAQ:MCHP) issued its quarterly earnings data on Monday. The semiconductor company reported $0.57 EPS for the quarter, hitting the consensus estimate of $0.57, Briefing.com reports. The business had revenue of $1.33 billion during the quarter, compared to analyst estimates of $1.33 billion. Microchip Technology had a net margin of 27.59% and a return on equity of 45.59%. The company’s revenue for the quarter was down 40.6% on a year-over-year basis. During the same period in the prior year, the business earned $1.56 EPS. Microchip Technology updated its Q1 guidance to $0.48-0.56 EPS and its Q1 2025 guidance to 0.480-0.560 EPS.

Microchip Technology Stock Performance

MCHP opened at $93.76 on Tuesday. The firm has a 50 day moving average of $88.27 and a two-hundred day moving average of $85.25. The firm has a market capitalization of $50.67 billion, a PE ratio of 21.91, a P/E/G ratio of 2.79 and a beta of 1.60. The company has a current ratio of 0.98, a quick ratio of 0.58 and a debt-to-equity ratio of 0.57. Microchip Technology has a 12-month low of $68.75 and a 12-month high of $94.63.

Microchip Technology Increases Dividend

The business also recently declared a quarterly dividend, which will be paid on Wednesday, June 5th. Shareholders of record on Wednesday, May 22nd will be issued a $0.452 dividend. This represents a $1.81 dividend on an annualized basis and a dividend yield of 1.93%. This is a boost from Microchip Technology’s previous quarterly dividend of $0.45. Microchip Technology’s dividend payout ratio (DPR) is currently 42.06%.

Analyst Ratings Changes

A number of research analysts have weighed in on MCHP shares. Susquehanna reiterated a “positive” rating and set a $100.00 target price on shares of Microchip Technology in a report on Monday, April 8th. TD Cowen raised their price objective on Microchip Technology from $75.00 to $80.00 and gave the company a “market perform” rating in a research report on Friday, February 2nd. Stifel Nicolaus upped their target price on shares of Microchip Technology from $98.00 to $102.00 and gave the stock a “buy” rating in a research report on Wednesday, May 1st. Evercore ISI began coverage on shares of Microchip Technology in a research note on Tuesday, April 16th. They set an “outperform” rating and a $106.00 price objective on the stock. Finally, Wolfe Research upgraded Microchip Technology from a “peer perform” rating to an “outperform” rating and set a $105.00 price target on the stock in a research note on Thursday, January 18th. Six research analysts have rated the stock with a hold rating and eleven have given a buy rating to the company’s stock. According to data from MarketBeat, the company presently has a consensus rating of “Moderate Buy” and an average price target of $92.75.

Insider Activity at Microchip Technology

In related news, CFO James Eric Bjornholt sold 1,970 shares of Microchip Technology stock in a transaction dated Friday, February 23rd. The stock was sold at an average price of $83.90, for a total value of $165,283.00. Following the sale, the chief financial officer now directly owns 32,893 shares in the company, valued at approximately $2,759,722.70. The transaction was disclosed in a legal filing with the SEC, which is available at this link. 2.07% of the stock is owned by company insiders.

Microchip Technology Company Profile

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.