Analog chipmaker Microchip Technology will be releasing its earnings report tomorrow after the market closes. In the last quarter, the company met analysts’ revenue expectations with revenues of $1.77 billion, a decrease of 18.6% year on year. The quarter was considered weak, with disappointing revenue guidance for the next quarter and an increase in inventory levels. To find out if Microchip Technology is a buy or sell going into earnings, check out the original article on StockStory for free.
Analysts are forecasting a 39.9% year-on-year decline in revenue to $1.34 billion for Microchip Technology this quarter, compared to a 21.1% increase in the same quarter last year. Adjusted earnings are expected to be $0.57 per share. The majority of analysts have maintained their estimates in the last 30 days, suggesting stability in the business heading into earnings. Microchip Technology has missed Wall Street’s revenue estimates twice in the last two years.
In the analog semiconductors segment, some peers have already reported their Q1 results, providing insight into what we can expect from Microchip Technology. Impinj saw a 10.6% decrease in revenue year on year, exceeding analysts’ expectations by 4.4%, while ON Semiconductor reported a revenue decline of 4.9%, in line with consensus estimates. Following their results, Impinj saw a 28.8% increase in share price, while ON Semiconductor was up 3.1%.
Investors in the analog semiconductors segment have remained steady going into earnings, with share prices remaining flat over the last month. Microchip Technology is up 2.9% during the same period and has an average analyst price target of $93.7, compared to the current share price of $91.7.