Benzinga - by Avi Kapoor, Benzinga Staff Writer.
Microchip Technology Incorporated (NASDAQ:MCHP) posted in-line earnings for its fourth quarter on Monday.
Microchip Technology posted GAAP earnings of 57 cents per share, in-line with estimates of 57 cents per share. The company posted sales of $1.33 billion in-line with expectations, according to data from Benzinga Pro.
Microchip Technology raised its quarterly cash dividend by 18.0% year-over-year to 45.2 cents per share.
“We experienced a major inventory correction in fiscal 2024, leading to a 9.5% decline in revenue to $7.6 billion. Despite this, our resilient operating model and rapid adjustment to the adverse business environment enabled us to navigate these challenges to achieve a non-GAAP operating margin of 43.9%,” said Ganesh Moorthy, President and Chief Executive Officer. “We remained committed to our capital return program, returning $1.89 billion through dividends and share buybacks during fiscal 2024, up 15.4% from the prior year, and we are tracking towards achieving our goal of returning 100% of adjusted free cash flow to shareholders by the current fiscal year-end.”
Microchip Technology shares rose 2.6% to close at $93.76 on Monday.
These analysts made changes to their price targets on Microchip Technology following earnings announcement.
- Mizuho raised the price target on Microchip Technology from $82 to $85. Mizuho analyst Vijay Rakesh maintained a Neutral rating.
- Needham boosted the price target on Microchip Technology from $90 to $100. Needham analyst Quinn Bolton maintained a Buy rating.
- Susquehanna increased the price target on Microchip Technology from $100 to $105. Susquehanna analyst Christopher Rolland maintained a Positive rating.
- Truist Securities raised the price target on Microchip Technology from $93 to $96. Truist Securities analyst William Stein maintained a Buy rating.
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