Microchip Technology (NASDAQ:MCHP) Updates Q2 Earnings Guidance

Microchip Technology (NASDAQ:MCHP) issued an update on its second quarter earnings guidance on Thursday morning. The company provided earnings per share guidance of $0.40-0.46 for the period, compared to the consensus earnings per share estimate of $0.59. The company issued revenue guidance of $1.12-1.18 billion, compared to the consensus revenue estimate of $1.31 billion. Microchip Technology also updated its Q2 2025 guidance to 0.400-0.460 EPS.

Microchip Technology Trading Down 10.6 %

NASDAQ:MCHP traded down $8.94 during mid-day trading on Friday, hitting $75.43. 17,482,866 shares of the stock traded hands, compared to its average volume of 6,510,382. The stock has a market capitalization of $40.47 billion, a price-to-earnings ratio of 21.74 and a beta of 1.54. Microchip Technology has a 52 week low of $68.75 and a 52 week high of $100.57. The firm’s 50 day moving average is $91.66 and its two-hundred day moving average is $89.42. The company has a quick ratio of 0.67, a current ratio of 1.20 and a debt-to-equity ratio of 0.75.

Microchip Technology (NASDAQ:MCHP) last issued its earnings results on Thursday, August 1st. The semiconductor company reported $0.53 EPS for the quarter, topping analysts’ consensus estimates of $0.52 by $0.01. The business had revenue of $1.24 billion for the quarter, compared to the consensus estimate of $1.24 billion. Microchip Technology had a net margin of 20.80% and a return on equity of 27.82%. The company’s revenue for the quarter was down 45.8% compared to the same quarter last year. During the same period in the prior year, the firm earned $1.56 EPS. On average, equities research analysts predict that Microchip Technology will post 2.35 earnings per share for the current year.

Microchip Technology Increases Dividend

The business also recently announced a quarterly dividend, which will be paid on Thursday, September 5th. Shareholders of record on Thursday, August 22nd will be paid a $0.454 dividend. This is an increase from Microchip Technology’s previous quarterly dividend of $0.45. This represents a $1.82 dividend on an annualized basis and a yield of 2.41%. The ex-dividend date of this dividend is Thursday, August 22nd. Microchip Technology’s dividend payout ratio is currently 52.16%.

Wall Street Analysts Forecast Growth

A number of brokerages have commented on MCHP. Piper Sandler restated a neutral rating and issued a $90.00 target price (up from $80.00) on shares of Microchip Technology in a research note on Tuesday, May 7th. TD Cowen lowered their price target on shares of Microchip Technology from $90.00 to $80.00 and set a hold rating for the company in a research report on Friday. Needham & Company LLC increased their price objective on shares of Microchip Technology from $90.00 to $100.00 and gave the stock a buy rating in a research note on Tuesday, May 7th. Evercore ISI began coverage on shares of Microchip Technology in a research note on Tuesday, April 16th. They issued an outperform rating and a $106.00 price target on the stock. Finally, JPMorgan Chase & Co. reduced their target price on shares of Microchip Technology from $110.00 to $100.00 and set an overweight rating on the stock in a research note on Friday. Seven equities research analysts have rated the stock with a hold rating and fourteen have given a buy rating to the company’s stock. According to MarketBeat, the company has an average rating of Moderate Buy and a consensus price target of $99.15.

Insider Activity

In other news, VP Stephen V. Drehobl sold 10,000 shares of the company’s stock in a transaction dated Wednesday, May 8th. The stock was sold at an average price of $90.88, for a total value of $908,800.00. Following the transaction, the vice president now owns 82,203 shares in the company, valued at approximately $7,470,608.64. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through the SEC website. In related news, VP Stephen V. Drehobl sold 10,000 shares of the business’s stock in a transaction that occurred on Wednesday, May 8th. The stock was sold at an average price of $90.88, for a total value of $908,800.00. Following the completion of the sale, the vice president now owns 82,203 shares of the company’s stock, valued at approximately $7,470,608.64. The sale was disclosed in a document filed with the SEC, which is available at this link. Also, VP Stephen V. Drehobl sold 7,830 shares of the business’s stock in a transaction that occurred on Thursday, May 16th. The shares were sold at an average price of $95.06, for a total value of $744,319.80. Following the completion of the sale, the vice president now directly owns 79,509 shares of the company’s stock, valued at approximately $7,558,125.54. The disclosure for this sale can be found here. Insiders have sold 23,993 shares of company stock worth $2,251,857 in the last 90 days. Company insiders own 2.07% of the company’s stock.

About Microchip Technology

Microchip Technology Incorporated develops, manufactures, and sells smart, connected, and secure embedded control solutions in the Americas, Europe, and Asia. The company offers general purpose 8-bit, 16-bit, and 32-bit microcontrollers; 32-bit embedded mixed-signal microprocessors; and specialized microcontrollers for automotive, industrial, computing, communications, lighting, power supplies, motor control, human machine interface, security, wired connectivity, and wireless connectivity applications.