Microchip Technology is set to release its earnings report tomorrow after the market closes. In the last quarter, the company met analysts’ revenue expectations with revenues of $1.77 billion, a decrease of 18.6% year on year. However, the quarter was considered weak, with disappointing revenue guidance for the next quarter and an increase in inventory levels.
According to recent forecasts, analysts expect a 39.9% year-on-year decline in revenue to $1.34 billion for Microchip Technology this quarter, compared to a 21.1% increase in the same quarter last year. Adjusted earnings are expected to be $0.57 per share. Despite some fluctuations in estimates over the past month, most analysts have remained stable, indicating that they believe that Microchip Technology is on track to meet their expectations heading into earnings season.
Microchip Technology has missed Wall Street’s revenue estimates twice in the last two years, which has contributed to investors’ uncertainty about its future performance. Nevertheless, some peers in the analog semiconductors segment have already reported their Q1 results, providing valuable insights into what we can expect from Microchip Technology this time around.
Impinj reported a 10.6% decrease in revenue year on year, exceeding analysts’ expectations by 4.4%, while ON Semiconductor reported a revenue decline of 4.9%, also meeting consensus estimates. Following their results, Impinj saw a 28.8% increase in share price and ON Semiconductor was up 3%. Analysts are expecting similar or better performance from Microchip Technology in this quarter based on these results from peers and other factors such as growing demand for analog semiconductors products and increasing adoption by customers across various industries like automotive and consumer electronics markets..
:quality(75)/cloudfront-us-east-1.images.arcpublishing.com/elcomercio/JZMGDH5GFBBDPMYRLZLPOGGHOI.jpg)