Microchip Technology (NASDAQ:MCHP) Updates Q2 Earnings Guidance

Microchip Technology (NASDAQ:MCHP) updated its second quarter earnings guidance on Thursday. The company provided earnings per share guidance of $0.40-0.46 for the period, compared to the consensus earnings per share 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

Several research firms have issued reports on MCHP. Morgan Stanley downgraded shares of Microchip Technology from an overweight rating to an equal weight rating and decreased their price target for the stock from $102.00 to $100.00 in a research note on Thursday, July 11th. The Goldman Sachs Group raised their price objective on shares of Microchip Technology from $77.00 to $88.00 and gave the stock a neutral rating in a research report on Tuesday, May 7th. Evercore ISI started coverage on shares of Microchip Technology in a research report on Tuesday, April 16th. They set an outperform rating and a $106.00 price target for the company. TD Cowen dropped their price target 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, JPMorgan Chase & Co. dropped their price target on shares of Microchip Technology from $110.00 to $100.00 and set an overweight rating for the company in a research report on Friday. Seven analysts have rated the stock with a hold rating and fourteen have issued a buy rating to the company. According to data from MarketBeat.com, Microchip Technology presently has an average rating of Moderate Buy and an average price target of $99.15.

Microchip Technology Price Performance

Shares of MCHP traded down $8.94 during trading hours on Friday, reaching $75.43. The company 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. The company has a current ratio of 1.20, a quick ratio of 0.67 and a debt-to-equity ratio of 0.75. The company has a market capitalization of $40.47 billion, a price-to-earnings ratio of 21.74 and a beta of 1.54. Microchip Technology has a 12-month low of $68.75 and a 12-month high of $100.57.

Microchip Technology (NASDAQ:MCHP) last issued its quarterly earnings data on Thursday, August 1st. The semiconductor company reported $0.53 EPS for the quarter, beating analysts’ consensus estimates of $0.52 by $0.01. Microchip Technology had a net margin of 20.80% and a return on equity of 27.82%. The firm had revenue of $1.24 billion for the quarter, compared to analysts’ expectations of $1.24 billion. During the same period in the prior year, the company earned $1.56 EPS. The firm’s revenue was down 45.8% on a year-over-year basis. Research analysts expect that Microchip Technology will post 2.35 earnings per share for the current year.

Microchip Technology Increases Dividend

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

Insider Activity at Microchip Technology

In other news, Director Matthew W. Chapman sold 2,748 shares of Microchip Technology stock in a transaction that occurred on Monday, June 10th. The shares were sold at an average price of $93.88, for a total transaction of $257,982.24. Following the sale, the director now owns 35,682 shares in the company, valued at $3,349,826.16. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. In other news, VP Stephen V. Drehobl sold 10,000 shares of the firm’s stock in a transaction that occurred on Wednesday, May 8th. The shares were sold at an average price of $90.88, for a total transaction of $908,800.00. Following the completion of the sale, the vice president now owns 82,203 shares of the company’s stock, valued at $7,470,608.64. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. Also, Director Matthew W. Chapman sold 2,748 shares of the firm’s stock in a transaction that occurred on Monday, June 10th. The stock was sold at an average price of $93.88, for a total transaction of $257,982.24. Following the sale, the director now directly owns 35,682 shares of the company’s stock, valued at approximately $3,349,826.16. The disclosure for this sale can be found here. Over the last quarter, insiders have sold 23,993 shares of company stock worth $2,251,857. 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.