Microchip Technology (NASDAQ:MCHP) Releases Quarterly Earnings Results, Beats Expectations By $0.01 EPS

Microchip Technology (NASDAQ:MCHP) released its earnings results on Thursday. The semiconductor company reported $0.53 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.52 by $0.01, Briefing.com reports. The firm had revenue of $1.24 billion during the quarter, compared to analyst estimates of $1.24 billion. Microchip Technology had a return on equity of 27.82% and a net margin of 20.80%. Microchip Technology’s revenue was down 45.8% compared to the same quarter last year. During the same period last year, the business posted $1.56 earnings per share. Microchip Technology updated its Q2 guidance to $0.40-0.46 EPS and its Q2 2025 guidance to 0.400-0.460 EPS.

Microchip Technology Price Performance

Shares of MCHP traded down $8.94 during mid-day trading on Friday, hitting $75.43. The company’s stock had a trading volume of 17,482,866 shares, compared to its average volume of 6,510,382. The firm has a 50-day simple moving average of $91.66 and a 200 day simple moving average of $89.42. Microchip Technology has a 1-year low of $68.75 and a 1-year high of $100.57. The firm has a market capitalization of $40.47 billion, a P/E ratio of 21.74 and a beta of 1.54. The company has a current ratio of 1.20, a quick ratio of 0.67 and a debt-to-equity ratio of 0.75.

Microchip Technology Increases Dividend

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

Analysts Set New Price Targets

A number of equities analysts have recently commented on MCHP shares. Citigroup lowered their price objective on Microchip Technology from $104.00 to $92.00 and set a “buy” rating for the company in a research report on Friday. Evercore ISI started coverage on shares of Microchip Technology in a report on Tuesday, April 16th. They set an “outperform” rating and a $106.00 price target for the company. JPMorgan Chase & Co. reduced their price objective on shares of Microchip Technology from $110.00 to $100.00 and set an “overweight” rating on the stock in a report on Friday. TD Cowen decreased their price objective on shares of Microchip Technology from $90.00 to $80.00 and set a “hold” rating for the company in a research report on Friday. Finally, Truist Financial dropped their target price on Microchip Technology from $96.00 to $89.00 and set a “buy” rating on the stock in a report on Friday. Seven equities research 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 stock presently has an average rating of “Moderate Buy” and a consensus target price of $99.15.

Insider Buying and Selling

In other news, CFO James Eric Bjornholt sold 3,188 shares of Microchip Technology stock in a transaction that occurred on Thursday, May 23rd. The shares were sold at an average price of $99.98, for a total transaction of $318,736.24. Following the completion of the sale, the chief financial officer now directly owns 33,257 shares in the company, valued at approximately $3,325,034.86. The transaction was disclosed in a legal filing with the SEC, which is available through this hyperlink. In other Microchip Technology news, VP Stephen V. Drehobl sold 7,830 shares of the firm’s stock in a transaction dated Thursday, May 16th. The shares were 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 directly owns 79,509 shares in the company, valued at approximately $7,558,125.54. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, CFO James Eric Bjornholt sold 3,188 shares of the company’s stock in a transaction dated Thursday, May 23rd. The shares were sold at an average price of $99.98, for a total transaction of $318,736.24. Following the completion of the sale, the chief financial officer now directly owns 33,257 shares in the company, valued at approximately $3,325,034.86. The disclosure for this sale can be found here. Insiders have sold 23,993 shares of company stock valued at $2,251,857 over the last quarter. Company insiders own 2.07% of the company’s stock.

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.