Microchip Technology (MCHP) reported quarterly earnings of $0.11 per share, surpassing the Zacks Consensus Estimate of $0.10 per share. In comparison, the company earned $0.57 per share in the same period last year. These numbers have been adjusted for non-recurring events.
This quarterly report represents an earnings surprise of 10%. A quarter ago, it was expected that this chipmaker would post earnings of $0.28 per share when it actually produced earnings of $0.20, delivering a surprise of -28.57%.
In the past four quarters, the company has exceeded the average earnings per share forecasts set by analysts on three occasions.
Microchip Technology, part of the Zacks Semiconductor – Analog and Mixed industry group, reported quarterly earnings of $970.5 million ending March 2025, exceeding the Zacks Consensus Estimate by 0.98%. In comparison, they had recorded revenues of $1.33 billion during the same period the previous year. Over the past four quarters, this marks their second time beating the expected revenue projections.
The potential for the stock’s short-term price fluctuation following the recent data release and projected future profits largely hinges on what insights the management offers during the earnings call.
The stock price of Microchip Technology has decreased approximately 16.2% since the start of the year compared to the S&P 500’s drop of -4.3%.
What’s Next for Microchip Tech?
As Microchip Technology has lagged behind the overall market performance this year, investors are left wondering about the future prospects of the stock.
The primary query doesn’t come with straightforward solutions; however, an effective approach for investors tackling this issue is examining the company’s earnings forecast. This encompasses not just the projected earnings estimates for the upcoming quarter(s) but also the shifts in these forecasts recently observed.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for Microchip Tech: mixed. While the magnitude and direction of estimate revisions could change following the company’s just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
We’ll be watching closely to observe how forecasts for the upcoming quarters and this fiscal year evolve over the next few days. Currently, analysts predict an earnings per share (EPS) of $0.16 with revenues reaching $990.49 million for the approaching quarter. For the ongoing fiscal year, they anticipate an EPS of $1.12 alongside expected sales of $4.3 billion.
Investors ought to keep in mind that the overall prospects for the sector can significantly influence how well the stock performs too. Regarding the Zacks Industry Rank, the Semiconductor – Analog and Mixed group is presently among the upper 18% of all approximately 250 Zacks sectors. According to our analysis, those industries ranked within the top half of the Zacks system tend to do over twice as well compared to those in the lower half.
Another company in the sector, Analog Devices (ADI), hasn’t yet announced its earnings for the quarter ending in April 2025. These results are anticipated to be published on May 22.
It’s anticipated that this chip manufacturer will announce quarterly earnings of $1.69 per share in their next financial statement, marking a yearly increase of 20.7%. Over the past thirty days, the aggregated EPS forecast for the quarter has not fluctuated.
It is anticipated that Analog Devices will see revenues of around $2.5 billion, marking an increase of 15.9% compared to the same period last year.
The article was initially posted on Zacks Investment Research (Dailyexe).
