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

Microchip Technology (NASDAQ:MCHP - Get Free Report) issued an update on its first quarter 2025 earnings guidance on Monday morning. The company provided earnings per share guidance of 0.480-0.560 for the period, compared to the consensus earnings per share 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

Microchip Technology stock traded up $2.40 during midday trading on Monday, hitting $93.76. 7,233,477 shares of the company's stock were exchanged, compared to its average volume of 5,624,807. The stock has a 50-day moving average price of $88.27 and a two-hundred day moving average price of $85.25. Microchip Technology has a 52-week low of $68.75 and a 52-week high of $94.63. The company has a market cap of $50.67 billion, a P/E ratio of 21.91, a PEG ratio of 2.79 and a beta of 1.60. The company has a debt-to-equity ratio of 0.57, a quick ratio of 0.58 and a current ratio of 0.98.

Microchip Technology (NASDAQ:MCHP - Get Free Report) last posted its quarterly earnings data on Monday, May 6th. The semiconductor company reported $0.57 earnings per share for the quarter, hitting the consensus estimate of $0.57. Microchip Technology had a net margin of 27.59% and a return on equity of 45.59%. The company had revenue of $1.33 billion for the quarter, compared to analysts' expectations of $1.33 billion. During the same period in the prior year, the business earned $1.56 earnings per share. Microchip Technology's revenue for the quarter was down 40.6% compared to the same quarter last year. On average, equities research analysts forecast that Microchip Technology will post 4.64 earnings per share for the current year.

Microchip Technology Increases Dividend

The firm also recently declared a quarterly dividend, which will be paid on Wednesday, June 5th. Shareholders of record on Wednesday, May 22nd will be given a dividend of $0.452 per share. This is a boost from Microchip Technology's previous quarterly dividend of $0.45. This represents a $1.81 dividend on an annualized basis and a yield of 1.93%. Microchip Technology's dividend payout ratio (DPR) is presently 42.06%.

Analysts Set New Price Targets

A number of equities analysts recently commented on the stock. Truist Financial decreased their target price on shares of Microchip Technology from $97.00 to $93.00 and set a buy rating on the stock in a research report on Tuesday, January 9th. UBS Group decreased their price target on Microchip Technology from $105.00 to $95.00 and set a buy rating on the stock in a research note on Friday, February 2nd. Stifel Nicolaus increased their price objective on Microchip Technology from $98.00 to $102.00 and gave the company a buy rating in a research note on Wednesday, May 1st. Needham & Company LLC lifted their target price on shares of Microchip Technology from $85.00 to $90.00 and gave the stock a buy rating in a research note on Friday, February 2nd. Finally, The Goldman Sachs Group decreased their price objective on shares of Microchip Technology from $87.00 to $77.00 and set a neutral rating on the stock in a research report on Friday, February 2nd. Six analysts have rated the stock with a hold rating and eleven have assigned a buy rating to the company. According to MarketBeat.com, Microchip Technology has an average rating of Moderate Buy and a consensus price target of $92.75.

Insider Buying and Selling at Microchip Technology

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

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.