Microchip Technology (NASDAQ:MCHP) Releases Quarterly Earnings Results, Beats Estimates By $0.03 EPS

Microchip Technology (NASDAQ:MCHP) released its earnings results on Tuesday. The semiconductor company reported $0.46 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.43 by $0.03, Briefing.com reports. The business had revenue of $1.16 billion for the quarter, compared to analyst estimates of $1.15 billion. Microchip Technology had a return on equity of 28.33% and a net margin of 20.80%. Microchip Technology’s revenue was down 48.4% on a year-over-year basis. During the same quarter in the prior year, the company posted $1.54 earnings per share. Microchip Technology updated its Q3 guidance to $0.25-0.35 EPS and its Q3 2025 guidance to 0.250-0.350 EPS.

Microchip Technology Price Performance

Shares of MCHP traded up $0.59 during trading hours on Thursday, reaching $74.34. The stock had a trading volume of 7,232,164 shares, compared to its average volume of 5,966,145. The stock has a market capitalization of $39.88 billion, a PE ratio of 51.99 and a beta of 1.53. Microchip Technology has a 12 month low of $71.76 and a 12 month high of $100.57. The company has a debt-to-equity ratio of 0.96, a quick ratio of 1.08 and a current ratio of 1.94. The company’s 50-day moving average is $77.05 and its two-hundred day moving average is $85.12.

Microchip Technology Increases Dividend

The business also recently declared a quarterly dividend, which will be paid on Friday, December 6th. Stockholders of record on Friday, November 22nd will be issued a dividend of $0.455 per share. The ex-dividend date of this dividend is Friday, November 22nd. This is an increase from Microchip Technology’s previous quarterly dividend of $0.45. This represents a $1.82 annualized dividend and a dividend yield of 2.45%. Microchip Technology’s dividend payout ratio is 126.57%.

Insiders Place Their Bets

In other news, CFO James Eric Bjornholt sold 2,154 shares of Microchip Technology stock in a transaction dated Friday, August 23rd. The stock was sold at an average price of $81.50, for a total transaction of $175,551.00. Following the sale, the chief financial officer now directly owns 33,257 shares of the company’s stock, valued at approximately $2,710,445.50. This trade represents a 0.00 % decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which can be accessed through the SEC website. Insiders own 2.10% of the company’s stock.

Wall Street Analysts Forecast Growth

MCHP has been the topic of several analyst reports. Needham & Company LLC dropped their price target on shares of Microchip Technology from $96.00 to $85.00 and set a “buy” rating on the stock in a research report on Wednesday. Morgan Stanley lowered Microchip Technology from an “overweight” rating to an “equal weight” rating and dropped their price objective for the company from $102.00 to $100.00 in a research note on Thursday, July 11th. TD Cowen reduced their target price on Microchip Technology from $80.00 to $70.00 and set a “hold” rating for the company in a research note on Wednesday. B. Riley dropped their price target on Microchip Technology from $110.00 to $103.00 and set a “buy” rating on the stock in a research note on Friday, August 2nd. Finally, Piper Sandler reduced their price objective on shares of Microchip Technology from $100.00 to $85.00 and set an “overweight” rating for the company in a research report on Wednesday. Six analysts have rated the stock with a hold rating and fourteen have given a buy rating to the company’s stock. Based on data from MarketBeat, Microchip Technology presently has a consensus rating of “Moderate Buy” and an average target price of $92.00.

Microchip Technology Company Profile

Microchip Technology Incorporated engages in the development, manufacture, and sale of 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 mixed-signal 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.