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.

Wall Street Analyst Weigh In

A number of equities research analysts recently commented on MCHP shares. Wolfe Research raised Microchip Technology from a peer perform rating to an outperform rating and set a $105.00 price objective for the company in a research note on Thursday, January 18th. Needham & Company LLC upped their price target on Microchip Technology from $85.00 to $90.00 and gave the company a buy rating in a research note on Friday, February 2nd. Stifel Nicolaus lifted their price objective on shares of Microchip Technology from $98.00 to $102.00 and gave the stock a buy rating in a research note on Wednesday, May 1st. Susquehanna reiterated a positive rating and issued a $100.00 target price on shares of Microchip Technology in a report on Monday, April 8th. Finally, Evercore ISI assumed coverage on shares of Microchip Technology in a report on Tuesday, April 16th. They issued an outperform rating and a $106.00 price target for the company. Six investment analysts have rated the stock with a hold rating and eleven have issued a buy rating to the stock. According to data from MarketBeat, the stock currently has a consensus rating of Moderate Buy and a consensus price target of $92.75.

Microchip Technology Stock Up 2.6 %

Shares of NASDAQ MCHP traded up $2.40 during mid-day trading on Monday, hitting $93.76. The company had a trading volume of 7,033,471 shares, compared to its average volume of 5,622,562. Microchip Technology has a one year low of $68.75 and a one year high of $94.63. The company has a market capitalization of $50.67 billion, a PE ratio of 21.35, a price-to-earnings-growth ratio of 2.79 and a beta of 1.60. 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 firm has a 50-day simple moving average of $88.05 and a two-hundred day simple moving average of $85.13.

Microchip Technology (NASDAQ:MCHP) last announced its quarterly earnings data on Monday, May 6th. The semiconductor company reported $0.57 EPS for the quarter, meeting analysts’ consensus estimates of $0.57. The company had revenue of $1.33 billion during the quarter, compared to the consensus estimate of $1.33 billion. Microchip Technology had a net margin of 27.59% and a return on equity of 45.59%. The company’s quarterly revenue was down 40.6% on a year-over-year basis. During the same quarter last year, the firm posted $1.56 EPS. On average, equities analysts expect that Microchip Technology will post 4.64 EPS for the current year.

Microchip Technology Increases Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Wednesday, June 5th. Shareholders of record on Wednesday, May 22nd will be paid a $0.452 dividend. This is a positive change from Microchip Technology’s previous quarterly dividend of $0.45. This represents a $1.81 annualized dividend and a yield of 1.93%. Microchip Technology’s dividend payout ratio is currently 42.06%.

Insider Activity

In related news, CFO James Eric Bjornholt sold 1,970 shares of the stock in a transaction on Friday, February 23rd. The stock was sold at an average price of $83.90, for a total value of $165,283.00. Following the sale, the chief financial officer now 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 can be accessed through this hyperlink. In related news, CFO James Eric Bjornholt sold 1,970 shares of Microchip Technology stock in a transaction dated Friday, February 23rd. The shares were 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 owns 32,893 shares of the company’s stock, valued at approximately $2,759,722.70. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this link. Also, Director Karlton D. Johnson sold 370 shares of the stock in a transaction dated Tuesday, February 6th. The shares were sold at an average price of $84.00, for a total transaction of $31,080.00. Following the completion of the transaction, the director now directly owns 1,789 shares in the company, valued at $150,276. The disclosure for this sale can be found here. Insiders own 2.07% of the company’s stock.

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.