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

Microchip Technology (NASDAQ:MCHP) issued its quarterly earnings results on Tuesday. The semiconductor company reported $0.46 earnings per share for the quarter, beating the consensus estimate of $0.43 by $0.03, Briefing.com reports. The company had revenue of $1.16 billion during the quarter, compared to analysts’ expectations of $1.15 billion. Microchip Technology had a return on equity of 28.33% and a net margin of 20.80%. The business’s quarterly revenue was down 48.4% on a year-over-year basis. During the same quarter in the prior year, the firm 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 Stock Down 2.7 %

Shares of MCHP stock traded down $2.02 during trading hours on Friday, reaching $72.32. The company had a trading volume of 2,195,683 shares, compared to its average volume of 5,948,925. 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 current ratio of 1.94 and a quick ratio of 1.08. The business has a fifty day simple moving average of $77.05 and a 200-day simple moving average of $85.12. The company has a market cap of $38.80 billion, a price-to-earnings ratio of 51.99 and a beta of 1.53.

Microchip Technology Increases Dividend

The business also recently announced a quarterly dividend, which will be paid on Friday, December 6th. Stockholders of record on Friday, November 22nd will be issued a $0.455 dividend. This represents a $1.82 dividend on an annualized basis and a dividend yield of 2.52%. The ex-dividend date of this dividend is Friday, November 22nd. This is a positive change from Microchip Technology’s previous quarterly dividend of $0.45. Microchip Technology’s dividend payout ratio (DPR) is currently 126.57%.

Insider Activity

In related news, CFO James Eric Bjornholt sold 2,154 shares of Microchip Technology stock in a transaction on 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 in the company, 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 legal filing with the SEC, which can be accessed through this link. Corporate insiders own 2.10% of the company’s stock.

Analyst Ratings Changes

Several equities research analysts have recently weighed in on the company. Truist Financial cut Microchip Technology from a “buy” rating to a “hold” rating and decreased their price target for the company from $89.00 to $80.00 in a research note on Monday, September 23rd. Piper Sandler decreased their price target on Microchip Technology from $100.00 to $85.00 and set an “overweight” rating for the company in a research note on Wednesday. Citigroup decreased their price target on Microchip Technology from $92.00 to $82.00 and set a “buy” rating for the company in a research note on Wednesday. KeyCorp decreased their target price on Microchip Technology from $100.00 to $95.00 and set an “overweight” rating for the company in a research note on Wednesday. Finally, Needham & Company LLC decreased their target price on Microchip Technology from $96.00 to $85.00 and set a “buy” rating for the company in a research note on Wednesday. One investment analyst has rated the stock with a sell rating, five have given a hold rating and fourteen have assigned a buy rating to the company. According to MarketBeat, the stock presently has a consensus rating of “Moderate Buy” and a consensus price target 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.