Microchip Technology Inc. Second Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component Microchip Technology, Inc. (NASDAQ:MCHP) will unveil its latest earnings on Thursday, November 3, 2011. 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 net income of 44 cents per share, a decline of 22.8% 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 48 cents. Between one and three months ago, the average estimate moved up. It has dropped from 49 cents during the last month. For the year, analysts are projecting profit of $1.80 per share, a decline of 18.9% from last year.

Past Earnings Performance: Last quarter, the company fell short of estimates by 0 cents, coming in at net income of 49 cents per share against a mean estimate of profit of 50 cents. The company fell in line with expectations in the fourth quarter of the last fiscal year.

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Wall St. Revenue Expectations: On average, analysts predict $343.4 million in revenue this quarter, a decline of 10.2% from the year ago quarter. Analysts are forecasting total revenue of $1.41 billion for the year, a decline of 5.4% from last year’s revenue of $1.49 billion.

Analyst Ratings: five out of nine analysts surveyed (55.6%) have a buy rating on Microchip Technology.. This is below the mean analyst rating of 10 competitors, which average 60.8% buy ratings.

A Look Back: In the first quarter, profit rose 10.9% to $99.3 million (49 cents a share) from $89.6 million (47 cents a share) the year earlier, but fell short analyst expectations. Revenue rose 16.7% to $374.5 million from $320.8 million.

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 42.3%, 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 seen net income rise in three straight quarters. Net income rose 65.7% in the fourth quarter of the last fiscal year and 45.2% in the third 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 September 30, 2011 to October 28, 2011, the stock price had risen $5.35 (17.2%) from $31.11 to $36.46. 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 10.3% (+$3.77) 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% (-$6.31) over that span. Shares are up $2.91 (+8.7%) year to date.

(Source: Xignite Financials)

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