Microchip Technology (NASDAQ:MCHP) Issues Q1 2025 Earnings Guidance

Microchip Technology (NASDAQ:MCHP) issued an update on its first quarter 2025 earnings guidance on Monday morning. The company provided EPS guidance of 0.480-0.560 for the period, compared to the consensus EPS estimate of 0.580. The company issued revenue guidance of $1.2 billion-$1.3 billion, compared to the consensus revenue estimate of $1.3 billion. Microchip Technology also updated its Q1 guidance to $0.48-0.56 EPS.

Microchip Technology Price Performance

MCHP traded down $0.02 during trading on Thursday, hitting $91.97. 526,574 shares of the company traded hands, compared to its average volume of 5,578,236. The company has a current ratio of 0.98, a quick ratio of 0.58 and a debt-to-equity ratio of 0.57. The company has a market cap of $49.70 billion, a PE ratio of 21.38, a P/E/G ratio of 2.79 and a beta of 1.60. The stock’s 50-day simple moving average is $88.45 and its two-hundred day simple moving average is $85.37. Microchip Technology has a 1 year low of $68.75 and a 1 year high of $96.14.

Microchip Technology (NASDAQ:MCHP) last released its quarterly earnings results on Monday, May 6th. The semiconductor company reported $0.57 EPS for the quarter, hitting analysts’ consensus estimates of $0.57. Microchip Technology had a net margin of 27.59% and a return on equity of 45.59%. The firm had revenue of $1.33 billion during the quarter, compared to analysts’ expectations of $1.33 billion. During the same period in the previous year, the company earned $1.56 EPS. The firm’s revenue for the quarter was down 40.6% compared to the same quarter last year. As a group, sell-side analysts anticipate that Microchip Technology will post 4.64 earnings per share for the current fiscal year.

Microchip Technology Increases Dividend

The business also recently declared a quarterly dividend, which will be paid on Wednesday, June 5th. Investors of record on Wednesday, May 22nd will be paid a $0.452 dividend. This represents a $1.81 annualized dividend and a yield of 1.97%. The ex-dividend date is Tuesday, May 21st. This is an increase from Microchip Technology’s previous quarterly dividend of $0.45. Microchip Technology’s dividend payout ratio (DPR) is currently 42.06%.

Wall Street Analyst Weigh In

A number of brokerages have commented on MCHP. Rosenblatt Securities restated a buy rating and issued a $100.00 target price on shares of Microchip Technology in a research note on Tuesday, January 30th. Truist Financial increased their target price on shares of Microchip Technology from $93.00 to $96.00 and gave the company a buy rating in a research report on Tuesday. Stifel Nicolaus raised their price target on Microchip Technology from $98.00 to $102.00 and gave the stock a buy rating in a report on Wednesday, May 1st. UBS Group boosted their price objective on shares of Microchip Technology from $95.00 to $103.00 and gave the company a buy rating in a report on Tuesday. Finally, The Goldman Sachs Group increased their price target on shares of Microchip Technology from $77.00 to $88.00 and gave the stock a neutral rating in a report on Tuesday. Six research analysts have rated the stock with a hold rating and twelve have issued a buy rating to the company. Based on data from MarketBeat.com, the stock has a consensus rating of Moderate Buy and a consensus price target of $98.47.

Insiders Place Their Bets

In other Microchip Technology news, CFO James Eric Bjornholt sold 1,970 shares of the business’s stock in a transaction that occurred on Friday, February 23rd. The stock was sold at an average price of $83.90, for a total transaction of $165,283.00. Following the completion of the sale, the chief financial officer now directly owns 32,893 shares in the company, valued at approximately $2,759,722.70. The transaction was disclosed in a document filed with the SEC, which is available through this link. 2.07% of the stock is currently owned by company insiders.

About Microchip Technology

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.