Microchip Technology Prepares for Q4 Earnings Amid Profit Declines

Microchip Technology Incorporated (MCHP), an American semiconductor company based in Chandler, Arizona, is known for its innovative embedded control solutions and has a market capitalization of $21.2 billion. The company offers a wide range of products, including microcontrollers (MCUs), analog and mixed-signal integrated circuits, memory devices, and connectivity solutions.

Upcoming Earnings Report and Analysts’ Expectations

Microchip is set to reveal its fiscal Q4 earnings results on Monday, May 5. Analysts predict a significant drop in profitability, forecasting earnings of only $0.03 per share. This projection represents a dramatic 94% decrease from the previous year’s earnings of $0.50 per share in the same quarter. Despite the company performing in line with or exceeding Wall Street expectations in three of the last four quarters, it missed the mark in the most recent reporting period.

Long-term Projections and Stock Performance

Looking ahead, analysts estimate that Microchip’s earnings per share (EPS) for fiscal 2025 will be around $1, a notable decline of 78.3% from the $4.60 EPS reported for fiscal 2024.

Over the past year, Microchip Technology’s share price has fallen by 51.8%, trailing behind the S&P 500 Index’s increase of 5.3% and the slight decline of the Technology Select Sector SPDR Fund (XLK).

In contrast to this downward trend, Microchip’s shares experienced a more than 27% increase on April 4. This rally placed the company at the forefront of gains in both the S&P 500 and Nasdaq 100, following President Trump’s announcement of a 90-day suspension of reciprocal tariffs, which boosted sentiment across the semiconductor sector.

Analyst Ratings and Price Targets

Wall Street analysts have a generally positive outlook on Microchip Technology, with an overall rating of “Strong Buy.” Out of 21 analysts, 15 recommend a “Strong Buy,” one suggests a “Moderate Buy,” four maintain a “Hold,” and one advises a “Moderate Sell.” The average price target for MCHP is currently $63, indicating a substantial potential upside of 56.4% from current levels.

On the date of publication, Kritika Sarmah did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information, please view the Barchart Disclosure Policy
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