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 earnings per share (EPS) guidance of 0.480-0.560 for the period, compared to the consensus 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 Analysts Forecast Growth

A number of analysts have recently commented on the company. B. Riley upped their price target on Microchip Technology from $105.00 to $110.00 and gave the company a buy rating in a research note on Tuesday. Mizuho increased their price target on Microchip Technology from $82.00 to $85.00 and gave the stock a neutral rating in a report on Tuesday. Needham & Company LLC increased their target price on Microchip Technology from $90.00 to $100.00 and gave the stock a buy rating in a research note on Tuesday. Truist Financial increased their price objective on shares of Microchip Technology from $93.00 to $96.00 and gave the stock a buy rating in a research report on Tuesday. Finally, KeyCorp lifted their price target on Microchip Technology from $90.00 to $110.00 and gave the company an overweight rating in a research note on Tuesday. Six analysts have rated the stock with a hold rating and twelve have given a buy rating to the company. Based on data from MarketBeat, the stock currently has an average rating of Moderate Buy and an average price target of $98.47.

Microchip Technology Stock Performance

Shares of MCHP stock traded down $1.18 during midday trading on Tuesday, hitting $92.58. 3,818,146 shares of the company were exchanged, compared to its average volume of 5,602,641. The firm has a market capitalization of $50.03 billion, a P/E ratio of 21.66, 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 has a 52 week low of $68.75 and a 52 week high of $96.14. The firm’s 50 day moving average price is $88.27 and its two-hundred day moving average price is $85.25.

Microchip Technology (NASDAQ:MCHP) last announced its earnings results on Monday, May 6th. The semiconductor company reported $0.57 earnings per share for the quarter, hitting analysts’ consensus estimates of $0.57. Microchip Technology had a return on equity of 45.59% and a net margin of 27.59%. The company had revenue of $1.33 billion for the quarter, compared to analyst estimates of $1.33 billion. During the same quarter last year, the company earned $1.56 earnings per share. The firm’s quarterly revenue was down 40.6% compared to the same quarter last year. As a group, equities research analysts anticipate 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. Investors of record on Wednesday, May 22nd will be given a dividend of $0.452 per share. This represents a $1.81 dividend on an annualized basis and a yield of 1.95%. This is a positive change from Microchip Technology’s previous quarterly dividend of $0.45. Microchip Technology’s dividend payout ratio (DPR) is currently 42.06%.

Insider Buying and Selling at Microchip Technology

In related news, CFO James Eric Bjornholt sold 1,970 shares of the stock in a transaction that occurred 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 sale, the chief financial officer now owns 32,893 shares of the company’s stock, valued at $2,759,722.70. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. 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.