Microchip Technology, Inc. Fourth Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component Microchip Technology, Inc. (NASDAQ:MCHP) will unveil its latest earnings on Thursday, May 3, 2012. Microchip Technology develops and makes specialized semiconductor products used in a variety of embedded control applications.

Microchip Technology, Inc. Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average estimate of analysts is for profit of 41 cents per share, a decline of 22.6% from the company’s actual earnings for the same quarter a year ago. The average estimate is the same as three months ago. Between one and three months ago, the average estimate was unchanged. It also has not changed during the last month. Analysts are projecting profit to rise by 22.5% compared to last year’s $1.72.

Past Earnings Performance: Last quarter, the company topped expectations by one cent, coming in at net income of 38 cents per share versus a mean estimate of profit of 37 cents per share. This followed two straight quarters of missing estimates.

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Wall St. Revenue Expectations: Analysts predict a decline of 10.3% in revenue from the year-earlier quarter to $340.8 million.

Analyst Ratings: Optimism surrounds Microchip Technology, as five analysts rate it as a buy, none rate it as a sell, and five rate it as a hold.

A Look Back: In the third quarter, profit fell 23.1% to $77.5 million (38 cents a share) from $100.8 million (51 cents a share) the year earlier, but exceeded analyst expectations. Revenue fell 10.5% to $329.2 million from $367.8 million.

Key Stats:

The company is trying to use this earnings announcement to rebound from income declines in the past two quarters. Net income dropped 23.1% in the second quarter and then again in the third quarter.

On the top line, the company is hoping to use this earnings announcement to snap a string of two-straight quarters of revenue declines. Revenue fell 10.9% in the second quarter and dropped again in the third quarter.

Stock Price Performance: Between February 1, 2012 and April 27, 2012, the stock price fell $1.79 (-4.8%), from $37.20 to $35.41. The stock price saw one of its best stretches over the last year between January 27, 2012 and February 3, 2012, when shares rose for six straight days, increasing 4.4% (+$1.61) over that span. It saw one of its worst periods between November 15, 2011 and November 25, 2011 when shares fell for eight straight days, dropping 11.6% (-$4.18) over that span.

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

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