Microchip Technology (NASDAQ:MCHP) Issues Quarterly Earnings Results, Beats Estimates By $0.03 EPS

Microchip Technology (NASDAQ:MCHP) posted its earnings results on Tuesday. The semiconductor company reported $0.46 EPS for the quarter, topping the consensus estimate of $0.43 by $0.03, Briefing.com reports. Microchip Technology had a return on equity of 28.33% and a net margin of 20.80%. The business had revenue of $1.16 billion during the quarter, compared to analysts’ expectations of $1.15 billion. During the same period in the previous year, the business earned $1.54 earnings per share. The firm’s revenue was down 48.4% on a year-over-year basis. Microchip Technology updated its Q3 guidance to $0.25-0.35 EPS and its Q3 2025 guidance to 0.250-0.350 EPS.

Microchip Technology Stock Up 0.8 %

Shares of NASDAQ:MCHP traded up $0.59 during trading on Thursday, hitting $74.34. The stock had a trading volume of 7,232,130 shares, compared to its average volume of 5,966,145. Microchip Technology has a 12 month low of $71.76 and a 12 month high of $100.57. The company has a market capitalization of $39.88 billion, a PE ratio of 51.99 and a beta of 1.53. The firm’s fifty day moving average is $77.05 and its 200 day moving average is $85.12. The company has a quick ratio of 1.08, a current ratio of 1.94 and a debt-to-equity ratio of 0.96.

Microchip Technology Increases Dividend

The company also recently announced a quarterly dividend, which will be paid on Friday, December 6th. Stockholders of record on Friday, November 22nd will be given a $0.455 dividend. The ex-dividend date of this dividend is Friday, November 22nd. This represents a $1.82 annualized dividend and a dividend yield of 2.45%. This is a positive change from Microchip Technology’s previous quarterly dividend of $0.45. Microchip Technology’s dividend payout ratio is currently 126.57%.

Insider Transactions at Microchip Technology

In other news, CFO James Eric Bjornholt sold 2,154 shares of the stock in a transaction that occurred on Friday, August 23rd. The stock was sold at an average price of $81.50, for a total value of $175,551.00. Following the completion of the transaction, the chief financial officer now owns 33,257 shares of the company’s stock, valued at approximately $2,710,445.50. This represents a 0.00 % decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Corporate insiders own 2.10% of the company’s stock.

Analyst Ratings Changes

A number of equities analysts have recently issued reports on MCHP shares. Citigroup cut their price objective on Microchip Technology from $92.00 to $82.00 and set a “buy” rating for the company in a report on Wednesday. Needham & Company LLC cut their price objective on Microchip Technology from $96.00 to $85.00 and set a “buy” rating for the company in a report on Wednesday. KeyCorp cut their price objective on Microchip Technology from $100.00 to $95.00 and set an “overweight” rating for the company in a report on Wednesday. Rosenblatt Securities reiterated a “buy” rating and issued a $90.00 price objective on shares of Microchip Technology in a report on Wednesday. Finally, Evercore ISI reiterated an “outperform” rating and issued a $95.00 price objective (down from $101.00) on shares of Microchip Technology in a report on Wednesday. Six analysts have rated the stock with a hold rating and fourteen have issued a buy rating to the company. According to MarketBeat.com, the stock has a consensus rating of “Moderate Buy” and an average price target of $92.00.

Microchip Technology Company Profile

Microchip Technology Incorporated engages in the development, manufacture, and sale of 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 mixed-signal 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.