Benzinga - by Avi Kapoor, Benzinga Staff Writer.
Microchip Technology Inc (NASDAQ: MCHP) reported upbeat earnings for its third quarter on Thursday.
Net sales of $1.766 billion, down 18.6% Y/Y, missing the consensus of $1.774 billion. Adjusted EPS was $1.08, beating the consensus of $1.04, according to data from Benzinga Pro.
Adjusted gross margin declined to 63.8% from 68.1%, and adjusted operating margin fell to $728.1 million (from $1.030 billion a year ago), with margins of 41.2% vs. 47.5% prior year quarter.
Ganesh Moorthy, President and Chief Executive Officer, said, “Our December quarter performance fell short of our November guidance, primarily due to weaker business conditions. Revenue declined 21.7% sequentially as weak demand drove customers to cut shipments and extend shutdowns to further de-risk their inventories, which prevented us from fulfilling previously planned shipments from backlog.”
For the fourth quarter, Microchip expects net sales of $1.225 billion-$1.425 billion (vs. consensus of $1.66 billion) and adjusted EPS of $0.46-$0.68 (vs. $0.91 estimate).
Microchip Technology shares gained 0.6% to close at $85.65 on Thursday.
These analysts made changes to their price targets on Microchip Technology after the company reported quarterly results.
- Needham raised the price target on Microchip Technology from $85 to $90. Needham analyst Quinn Bolton maintained a Buy rating.
- Susquehanna cut Microchip Technology price target from $105 to $100. Susquehanna analyst Christopher Rolland maintained a Positive rating.
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Latest Ratings for MCHP
| Mar 2022 | UBS | Maintains | Buy | |
| Feb 2022 | Rosenblatt | Maintains | Buy | |
| Jan 2022 | UBS | Upgrades | Neutral | Buy |
View the Latest Analyst Ratings
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