Microchip Technology, Inc. Quarterly Earnings Sneak Peek

S&P 500 (NYSE:SPY) component Microchip Technology, Inc. (NASDAQ:MCHP) will unveil its latest earnings on Thursday, August 4, 2011. Microchip Technology Inc. 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 50 cents per share, a rise of 6.4% from the company’s actual earnings for the same quarter a year ago. During the past three months, the average estimate has moved down from 55 cents. Between one and three months ago, the average estimate moved up, but has dropped from 56 cents during the last month. For the year, analysts are projecting net income of $1.96 per share, a decline of 11.7% from last year.

Past Earnings Performance: The company met estimates last quarter after beating the forecasts in the prior two. In the fourth quarter of the last fiscal year, the company reported profit of 53 cents per share versus a mean estimate of net income of 53 cents per share. In the third quarter of the last fiscal year, the company beat estimates by one cent.

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Wall St. Revenue Expectations: On average, analysts predict $374.4 million in revenue this quarter, a rise of 16.7% from the year ago quarter. Analysts are forecasting total revenue of $1.47 billion for the year, a decline of 1.3% from last year’s revenue of $1.49 billion.

Analyst Ratings: Analysts are bullish on this stock with eight analysts rating it as a buy, none rating it as a sell and four rating it as a hold.

Key Stats:

The company has enjoyed double-digit year-over-year percentage revenue growth for the past four quarters. Over that span, the company has averaged growth of 54.7%, with the biggest boost coming in the second quarter of the last fiscal year when revenue rose 68.7% from the year earlier quarter.

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% while it rose 45.2% in the third quarter of the last fiscal year and more than twofold in the second quarter of the last fiscal year.

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).

Stock Price Performance: During May 4, 2011 to July 29, 2011, the stock price had fallen $6.55 (-16.3%) from $40.30 to $33.75. The stock price saw one of its best stretches over the last year between April 18, 2011 and April 29, 2011 when shares rose for nine-straight days, rising 10.4% (+$3.82) over that span. It saw one of its worst periods between July 7, 2011 and July 14, 2011 when shares fell for six-straight days, falling 16.6% (-$6.38) over that span. Shares are down 17 cents (-0.5%) year to date.

(Source: Xignite Financials)

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