Microchip Technology Earnings: Yet Another Quarter of Profitability

S&P 500 (NYSE:SPY) component Microchip Technology Incorporated (NASDAQ:MCHP) reported its results for the third quarter. Microchip Technology develops and makes specialized semiconductor products used in a variety of embedded control applications.

Investing Insights: Will the iPad 3 Be the Next Catalyst for Apple’s Stock?

Microchip Technology Incorporated Earnings Cheat Sheet for the Third Quarter

Results: Net income for the semiconductor company fell to $77.5 million (38 cents per share) vs. $100.8 million (51 cents per share) a year earlier. This is a decline of 23.1% from the year earlier quarter.

Revenue: Fell 10.5% to $329.2 million from the year earlier quarter.

Actual vs. Wall St. Expectations: Microchip Technology Incorporated reported adjusted net income of 42 cents per share. By that measure, the company beat the mean estimate of 37 cents per share. Analysts were expecting revenue of $328.7 million.

Quoting Management: “Our December quarter results were consistent with the guidance we provided on November 3, 2011 and marked our 85th consecutive quarter of profitability,” said Steve Sanghi, President and CEO.

Key Stats:

The company has now seen net income fall in each of the last two quarters. In the second quarter, net income fell 23.1% from the year earlier quarter.

The company beat estimates last quarter after falling short in the previous two quarters. In the second quarter, it missed the mark by 2 cents, and in the first quarter, it fell short by one cent.

Revenue has fallen in the past two quarters. In the second quarter, revenue declined 10.9% to $340.6 million from the year earlier quarter.

Looking Forward: Over the past ninety days, the average estimate for the fourth quarter has fallen from 44 cents per share to 41 cents, indicating that analysts are growing pessisimistic about the company’s performance next quarter. At $1.71 per share, the average estimate for the fiscal year has fallen from $1.80 ninety days ago.

(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)

Don’t Miss These Additional Hot Earnings Stories:

Amazon.com Inc. Earnings: Net Income Beats Expectations

JPMorgan Chase & Co. Earnings: Bad Luck Continues

Apple Inc. Earnings: Higher-Than-Expected Net Income

To contact the reporter on this story: Derek Hoffman at staff.writers@wallstcheatsheet.com

To contact the editor responsible for this story: Damien Hoffman at editors@wallstcheatsheet.com