Microchip Technology Reports Disappointing Q3 Results
Microchip Technology Inc. (NASDAQ:MCHP) announced its financial results for the third quarter after the market closed on Thursday. Here are the key highlights from the report.
Earnings Overview: Microchip Technology's quarterly earnings came in at 20 cents per share, which fell short of the analyst consensus estimate of 28 cents. Additionally, the company's quarterly revenue totaled $1.02 billion, missing the expected $1.06 billion and marking a significant decline from $1.76 billion in sales during the same quarter last year.
CEO Remarks: Steve Sanghi, the CEO and president of Microchip, commented on the company's performance, stating, “Our December quarter performance reflects the need for decisive steps we are taking to realign our business, as revenue declined to $1.026 billion and inventory levels reached 266 days.”
Sanghi further remarked on his return to the CEO position in November, mentioning, “We have already initiated several key actions, including restructuring our manufacturing footprint, adjusting our channel strategy, and intensifying customer engagement. Our initial assessment indicates clear areas for operational enhancement, and we are taking a methodical yet urgent approach to evaluating all aspects of our business and implementing necessary changes to strengthen our competitive position.”
Future Outlook: Looking ahead, Microchip Technology forecasts fourth-quarter earnings to be between five cents and 15 cents per share, which is significantly lower than the 28 cent estimate. The expected revenue for the fourth quarter is projected to range from $920 million to $1 billion, again below the analyst consensus of $1.06 billion.
Stock Performance: Following the earnings announcement, Microchip Technology's shares dropped by 6.80% in after-hours trading, with shares priced at $49.50 as of Thursday.
In Summary: The latest quarterly report from Microchip Technology has led to disappointment among investors, as the company reported lower-than-expected earnings and revenue, coupled with a cautious outlook for the upcoming quarter.
Microchip, Earnings, Revenue