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

Microchip Technology (NASDAQ:MCHP) released its quarterly earnings data on Tuesday. The semiconductor company reported $0.46 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.43 by $0.03, Briefing.com reports. Microchip Technology had a net margin of 20.80% and a return on equity of 28.33%. The company had revenue of $1.16 billion for the quarter, compared to analysts’ expectations of $1.15 billion. During the same quarter in the prior year, the firm earned $1.54 EPS. The business’s revenue was down 48.4% on a year-over-year basis. 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

MCHP stock traded up $0.59 during midday trading on Thursday, reaching $74.34. The company had a trading volume of 7,232,164 shares, compared to its average volume of 5,966,145. The company has a market capitalization of $39.88 billion, a P/E ratio of 51.99 and a beta of 1.53. The company has a debt-to-equity ratio of 0.96, a current ratio of 1.94 and a quick ratio of 1.08. Microchip Technology has a 1 year low of $71.76 and a 1 year high of $100.57. The firm has a 50-day moving average price of $77.05 and a 200-day moving average price of $85.12.

Microchip Technology Increases Dividend

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

Analyst Ratings Changes

Several research firms have recently commented on MCHP. Bank of America downgraded Microchip Technology from a “buy” rating to a “neutral” rating and decreased their price objective for the company from $110.00 to $90.00 in a report on Friday, August 2nd. Mizuho set a $95.00 price target on shares of Microchip Technology in a research note on Friday, October 18th. Piper Sandler dropped their price objective on shares of Microchip Technology from $100.00 to $85.00 and set an “overweight” rating on the stock in a research note on Wednesday. TD Cowen decreased their target price on shares of Microchip Technology from $80.00 to $70.00 and set a “hold” rating for the company in a research report on Wednesday. Finally, Citigroup dropped their price target on shares of Microchip Technology from $92.00 to $82.00 and set a “buy” rating on the stock 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. Based on data from MarketBeat, the company currently has an average rating of “Moderate Buy” and a consensus price target of $92.00.

Insider Activity

In other news, CFO James Eric Bjornholt sold 2,154 shares of the company’s stock in a transaction on Friday, August 23rd. The shares were sold at an average price of $81.50, for a total value of $175,551.00. Following the completion of the sale, the chief financial officer now owns 33,257 shares of the company’s stock, valued at approximately $2,710,445.50. This represents a 0.00 % decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. 2.10% of the stock is owned by corporate insiders.

About Microchip Technology

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.