Microchip Technology (NASDAQ:MCHP) Releases Q2 Earnings Guidance

Microchip Technology (NASDAQ:MCHP) issued an update on its second quarter earnings guidance on Thursday morning. The company provided EPS guidance of $0.40-0.46 for the period, compared to the consensus EPS 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.

Wall Street Analyst Weigh In

A number of equities research analysts recently commented on the company. KeyCorp upped their target price on Microchip Technology from $90.00 to $110.00 and gave the company an overweight rating in a research report on Tuesday, May 7th. 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. Morgan Stanley downgraded shares of Microchip Technology from an overweight rating to an equal weight rating and decreased their target price for the company from $102.00 to $100.00 in a research report on Thursday, July 11th. Jefferies Financial Group initiated coverage on shares of Microchip Technology in a report on Monday, May 13th. They issued a buy rating and a $115.00 price target on the stock. Finally, Rosenblatt Securities reaffirmed a buy rating and set a $100.00 target price on shares of Microchip Technology in a report on Wednesday. Seven investment analysts have rated the stock with a hold rating and fourteen have assigned a buy rating to the stock. Based on data from MarketBeat, the company currently has a consensus rating of Moderate Buy and a consensus target price of $99.15.

Microchip Technology Price Performance

Microchip Technology stock traded down $8.94 during mid-day trading on Friday, hitting $75.43. 17,482,866 shares of the company were exchanged, compared to its average volume of 6,510,382. Microchip Technology has a 12-month low of $68.75 and a 12-month high of $100.57. The company has a market capitalization of $40.47 billion, a P/E ratio of 21.74 and a beta of 1.54. The business’s 50 day simple moving average is $91.66 and its two-hundred day simple moving average is $89.42. The company has a debt-to-equity ratio of 0.75, a current ratio of 1.20 and a quick ratio of 0.67.

Microchip Technology (NASDAQ:MCHP) last posted its quarterly earnings data 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 firm had revenue of $1.24 billion during the quarter, compared to analysts’ expectations of $1.24 billion. Microchip Technology had a return on equity of 27.82% and a net margin of 20.80%. The firm’s quarterly revenue was down 45.8% compared to the same quarter last year. During the same quarter last year, the business posted $1.56 EPS. Analysts forecast that Microchip Technology will post 2.35 earnings per share for the current fiscal year.

Microchip Technology Increases Dividend

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

Insider Transactions at Microchip Technology

In related news, VP Stephen V. Drehobl sold 10,000 shares of Microchip Technology 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 completion of the transaction, the vice president now directly owns 82,203 shares in the company, valued at $7,470,608.64. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. In related news, VP Stephen V. Drehobl sold 10,000 shares of the company’s stock in a transaction on Wednesday, May 8th. The stock was sold at an average price of $90.88, for a total transaction of $908,800.00. Following the completion of the transaction, the vice president now directly owns 82,203 shares in the company, valued at approximately $7,470,608.64. The sale was disclosed in a document filed with the SEC, which is available through this link. Also, VP Stephen V. Drehobl sold 7,830 shares of the company’s stock in a transaction dated Thursday, May 16th. The stock was sold at an average price of $95.06, for a total transaction of $744,319.80. Following the completion of the transaction, the vice president now 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. Over the last ninety days, insiders have sold 23,993 shares of company stock valued at $2,251,857. 2.07% of the stock is currently owned by insiders.

Microchip Technology Company Profile

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.