Microchip Technology Earnings Cheat Sheet: Company Enjoys Fifth Straight Quarter of Double-Digit Growth

S&P 500 (NYSE:SPY) component Microchip Technology Incorporated (NASDAQ:MCHP) reported net income above Wall Street’s expectations for the first quarter. Microchip Technology Inc. develops and makes specialized semiconductor products used in a variety of embedded control applications.

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Microchip Technology Incorporated Earnings Cheat Sheet for the First Quarter

Results: Net income for Microchip Technology Incorporated rose to $99.3 million (49 cents per share) vs. $89.6 million (47 cents per share) in the same quarter a year earlier. This marks a rise of 10.9% from the year earlier quarter.

Revenue: Rose 4.9% to $374.5 million from the year earlier quarter.

Actual vs. Wall St. Expectations: MCHP reported adjusted net income of 55 cents per share. By that measure, the company beat the mean estimate of 50 cents per share. Analysts were expecting revenue of $374.4 million.

Quoting Management: “We saw broad-based softness in our business due to weak global economic conditions,” said Steve Sanghi, President and CEO.”This manifested itself into demand and bookings weakness across multiple market segments and multiple customers in each segment.” Mr. Sanghi added, “As we expected, this weakness has now been reflected in the guidance of multiple companies in the semiconductor industry.”

Key Stats:

The company has now seen net income rise in three straight quarters. In the fourth quarter of the last fiscal year, net income rose 65.7% and in the third quarter of the last fiscal year, the figure rose 45.2%.

The company beat estimates last quarter after being in line with expectations in the fourth quarter of the last fiscal year with net income of 53 cents per share.

Competitors to Watch: Texas Instruments Inc. (NYSE:TXN), Analog Devices, Inc. (NYSE:ADI), ON Semiconductor Corp. (NASDAQ:ONNN), Atmel Corporation (NASDAQ:ATML), Linear Technology Corp. (NASDAQ:LLTC), IXYS Corporation (NASDAQ:IXYS), Semtech Corporation (NASDAQ:SMTC), STMicroelectronics N.V. (NYSE:STM), Maxim Integrated Products Inc. (NASDAQ:MXIM), and Intel Corporation (NASDAQ:INTC).

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(Source: Xignite Financials)