Brokers Set Expectations for MCHP Q1 Earnings

Key Points

• KeyCorp set its Q1 2028 EPS estimate for Microchip Technology at $0.91 per share, with Q2 2028 estimated at $1.01. The current full-year consensus for Microchip is $2.69 per share.
• Microchip recently reported better-than-expected quarterly results, earning $0.57 per share on revenue of $1.31 billion versus estimates of $0.50 per share and $1.26 billion. Revenue also jumped 35.1% year over year.
• Analyst sentiment remains constructive, with the stock holding a Moderate Buy consensus and an average price target of $100.10. Several firms recently raised targets or ratings, citing improving conditions and earnings potential.

Microchip Technology Incorporated (NASDAQ:MCHP - Free Report) - KeyCorp issued their Q1 2028 earnings per share (EPS) estimates for Microchip Technology in a report released on Monday, July 13th. KeyCorp analyst J. Vinh anticipates that the semiconductor company will post earnings of $0.91 per share for the quarter. The consensus estimate for Microchip Technology's current full-year earnings is $2.69 per share. KeyCorp also issued estimates for Microchip Technology's Q2 2028 earnings at $1.01 EPS.

Microchip Technology (NASDAQ:MCHP - Get Free Report) last released its quarterly earnings data on Thursday, May 7th. The semiconductor company reported $0.57 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.50 by $0.07. The firm had revenue of $1.31 billion for the quarter, compared to the consensus estimate of $1.26 billion. Microchip Technology had a net margin of 4.88% and a return on equity of 10.87%. The company's quarterly revenue was up 35.1% on a year-over-year basis. During the same period last year, the firm earned $0.11 earnings per share. Microchip Technology has set its Q1 2027 guidance at 0.670-0.710 EPS.

Several other equities analysts have also issued reports on the stock. Cantor Fitzgerald reaffirmed an "overweight" rating and issued a $125.00 price target on shares of Microchip Technology in a report on Wednesday, May 13th. Wall Street Zen upgraded shares of Microchip Technology from a "hold" rating to a "buy" rating in a research note on Saturday, May 9th. Susquehanna boosted their price target on Microchip Technology from $95.00 to $120.00 and gave the company a "positive" rating in a report on Friday, May 8th. Wells Fargo & Company raised their price objective on shares of Microchip Technology from $75.00 to $95.00 and gave the stock an "equal weight" rating in a research note on Friday, May 8th. Finally, Truist Financial raised their price target on shares of Microchip Technology from $69.00 to $105.00 and gave the company a "hold" rating in a research report on Friday, May 8th. Four investment analysts have rated the stock with a Strong Buy rating, thirteen have given a Buy rating and seven have given a Hold rating to the company. According to data from MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and an average price target of $100.10.

Microchip Technology Price Performance

Shares of MCHP stock opened at $81.68 on Friday. The company has a market cap of $44.35 billion, a P/E ratio of 388.97, a PEG ratio of 0.87 and a beta of 1.74. The company has a debt-to-equity ratio of 0.85, a current ratio of 2.09 and a quick ratio of 1.18. The stock's 50-day moving average is $92.51 and its 200 day moving average is $80.47. Microchip Technology has a 1-year low of $48.52 and a 1-year high of $105.91.

Hedge Funds Weigh In On Microchip Technology

Hedge funds have recently modified their holdings of the business. AQR Capital Management LLC lifted its position in Microchip Technology by 51.3% in the first quarter. AQR Capital Management LLC now owns 17,201 shares of the semiconductor company's stock valued at $827,000 after buying an additional 5,835 shares during the last quarter. Geneos Wealth Management Inc. increased its position in shares of Microchip Technology by 101.8% during the first quarter. Geneos Wealth Management Inc. now owns 1,221 shares of the semiconductor company's stock valued at $59,000 after acquiring an additional 616 shares during the last quarter. Cresset Asset Management LLC raised its stake in shares of Microchip Technology by 5.4% in the 2nd quarter. Cresset Asset Management LLC now owns 11,433 shares of the semiconductor company's stock valued at $805,000 after acquiring an additional 589 shares during the period. AXA S.A. raised its stake in shares of Microchip Technology by 21.3% in the 2nd quarter. AXA S.A. now owns 51,552 shares of the semiconductor company's stock valued at $3,628,000 after acquiring an additional 9,043 shares during the period. Finally, Treasurer of the State of North Carolina lifted its holdings in shares of Microchip Technology by 1.6% in the 2nd quarter. Treasurer of the State of North Carolina now owns 246,530 shares of the semiconductor company's stock worth $17,348,000 after acquiring an additional 3,851 shares during the last quarter. 91.51% of the stock is currently owned by hedge funds and other institutional investors.

Insider Buying and Selling

In other Microchip Technology news, COO Richard J. Simoncic sold 5,000 shares of the business's stock in a transaction on Thursday, June 4th. The stock was sold at an average price of $97.52, for a total transaction of $487,600.00. Following the transaction, the chief operating officer owned 130,508 shares of the company's stock, valued at approximately $12,727,140.16. The trade was a 3.69% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is accessible through the SEC website. Also, CEO Steve Sanghi sold 76,469 shares of the company's stock in a transaction dated Friday, May 1st. The shares were sold at an average price of $93.58, for a total transaction of $7,155,969.02. Following the completion of the sale, the chief executive officer directly owned 9,385,834 shares of the company's stock, valued at $878,326,345.72. This represents a 0.81% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 553,302 shares of company stock worth $49,673,635 in the last three months. Company insiders own 1.79% of the company's stock.

Microchip Technology Dividend Announcement

The firm also recently announced a quarterly dividend, which was paid on Friday, June 5th. Shareholders of record on Friday, May 22nd were paid a $0.455 dividend. This represents a $1.82 dividend on an annualized basis and a yield of 2.2%. The ex-dividend date of this dividend was Friday, May 22nd. Microchip Technology's dividend payout ratio (DPR) is 866.67%.

Key Stories Impacting Microchip Technology

Here are the key news stories impacting Microchip Technology this week:

• Positive Sentiment: Several reports highlighted that Microchip Technology (MCHP) could beat earnings estimates again, pointing to the company’s strong history of earnings surprises and improving conditions. Why Microchip Tech (MCHP) Could Beat Earnings Estimates Again
• Positive Sentiment: Analysts at KeyCorp raised expectations for future profitability, with estimates above current consensus for FY2027 and FY2028, reinforcing optimism around Microchip’s longer-term earnings power. Microchip Technology stock research coverage
• Positive Sentiment: A separate Zacks note said MCHP may have more room to rise because of inventory recovery, stronger bookings, and AI data center demand. Microchip Jumps 35% YTD: Is There More Room for the Stock to Rise?

Microchip Technology Company Profile

Microchip Technology Inc is a semiconductor company headquartered in Chandler, Arizona, that designs, develops and supplies a broad portfolio of embedded control and analog semiconductors. Its product lineup centers on microcontrollers (including the well-known PIC family), digital signal controllers and associated development tools and software, along with a range of mixed-signal and analog devices, nonvolatile memory, power management, timing, interface, wireless and security products. The company also provides integrated hardware and software solutions intended to simplify embedded design and accelerate time to market for OEMs and contract manufacturers.

Microchip's products are used across a wide range of end markets, including automotive, industrial automation, consumer electronics, communications, aerospace and defense, and Internet of Things (IoT) applications.

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