Microchip Technology Earnings: Here’s Why the Stock is Up Now

Microchip Technology Inc. (NASDAQ:MCHP) delivered a profit and beat Wall Street’s expectations, AND beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company. Shares are up 0.03%.

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Microchip Technology Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 6.52% to $0.49 in the quarter versus EPS of $0.46 in the year-earlier quarter.

Revenue: Rose 26.91% to $430.1 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Microchip Technology Inc. reported adjusted EPS income of $0.49 per share. By that measure, the company beat the mean analyst estimate of $0.47. It beat the average revenue estimate of $426.92 million.

Quoting Management: “We were very pleased with our execution in the March quarter,” said Steve Sanghi, President and CEO. “Our net sales were above the midpoint of our guidance and our gross margin, operating income and earnings per share all exceeded the high end of our guidance, as we more than delivered on our expectation that the December quarter would mark the bottom for this cycle.”

Key Stats (on next page)…

Revenue increased 3.38% from $416.05 million in the previous quarter. EPS increased 19.51% from $0.41 in the previous quarter.

Looking Forward: Analysts have a more positive outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has risen from a profit of $0.46 to a profit $0.50. For the current year, the average estimate has moved up from a profit of $1.71 to a profit of $1.84 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)