On Monday, Microchip Technology Incorporated (MCHP) reported in-line earnings for its fourth quarter. The company posted GAAP earnings of 57 cents per share, matching estimates. Sales were also in line with expectations at $1.33 billion. Despite facing challenges due to a major inventory correction in fiscal 2024, Microchip Technology raised its quarterly cash dividend by 18.0% year-over-year to 45.2 cents per share.
Ganesh Moorthy, President and Chief Executive Officer of Microchip Technology, stated that the company’s resilient operating model and rapid adjustment to the adverse business environment enabled it to navigate these challenges and achieve a non-GAAP operating margin of 43.9%. The company continued its commitment to its capital return program, returning $1.89 billion through dividends and share buybacks during fiscal 2024.
Following the earnings announcement, several analysts made changes to their price targets on Microchip Technology. Mizuho raised the price target from $82 to $85 and maintained a Neutral rating. Needham boosted the price target from $90 to $100 and maintained a Buy rating. Susquehanna increased the price target from $100 to $105 with a Positive rating. Truist Securities raised the price target from $93 to $96 and maintained a Buy rating.
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