Microchip

Stifel analyst Tore Svanberg reiterates Microchip Technology (NASDAQ:MCHP) with a Buy and maintains $94 price target.

MICROCHIP TECHNOLOGY ANNOUNCES FINANCIAL RESULTS FOR THIRD QUARTER OF FISCAL YEAR 2024 CHANDLER, Arizona – February 1, 2024 – (NASDAQ: MCHP) – Microchip Technology Incorporated, a leading provider of smart, connected, and secure embedded control solutions, today reported results for the three months ended December 31, 2023, as summarized in the table below. •Net sales of $1.766 billion, down 21.7% sequentially and down 18.6% from the year ago quarter. Our preliminary net sales results provided on January 8, 2024 was for net sales to be down 22% sequentially. •On a GAAP basis: gross profit of 63.4%; operating income of $529.4 million and 30.0% of net sales; net income of $419.2 million; and EPS of $0.77 per diluted share. Our guidance provided on November 2, 2023 was for GAAP EPS of $0.68 to $0.76 per diluted share. •On a Non-GAAP basis: gross profit of 63.8%; operating income of $728.1 million and 41.2% of net sales;

Microchip’s Highlights for the Quarter Ended December 31, 2023 •Introduced the industry’s most complete solution for 800G active electrical cables (AECs) used for generative AI networks. Our new META-DX2C 800G retimer is supported by a complete hardware and software reference design with key Microchip components.   •Released our latest TrustAnchor security IC to meet and exceed heightened automotive secure authentication requirements. Available as a CryptoAuthentication™ or CryptoAutomotive™ secure IC, the new TA101 device focuses on larger key sizes and enhanced cybersecurity requirements.   •Expanded and announced Microchip’s Detroit Automotive Technology Center as the destination for automotive clients. The 24,000-square-foot facility includes new high-voltage and E-Mobility labs, as well as technical training rooms for automotive clients to develop and optimize designs. •Showcased expanded RISC-V-based solutions, partnerships and system design tools at the 2023 RISC-V Summit including BeagleBoard hardware and system on module (SoM) products, as well as AI/ML solutions and an

Microchip Technology (NASDAQ:MCHP) ‘s Fourth Quarter Fiscal Year 2024 Outlook: The following statements are based on current expectations. These statements are forward-looking, and actual results may differ materially. Microchip Consolidated Guidance Net Sales $1.225 to $1.425 billion   GAAP Non-GAAP Adjustments Non-GAAP(1) Gross Profit 58.5% to 61.1% $5.9 to $6.9 million 59.0% to 61.6 % Operating Expenses(2) 41.1% to 46.9 % $198.7 to $202.7 million 26.9% to 30.7% Operating Income 11.6% to 20.0% $204.6 to $209.6 million 28.3% to 34.7% Other Expense, net $55.3 to $57.7 million ($0.2) to $0.2 million $55.5 to $57.5 million Income Tax Provision $17.4 to $52.3 million(3) $8.9 to $23.4 million $40.8 to $61.2 million(4) Net Income $69.4 to $174.9 million $181.0 to $200.9 million $250.4 to $375.8 million Diluted Common Shares Outstanding Approximately 545.5 to 546.5 million shares Approximately 545.5 to 546.5 million shares Earnings per Diluted Share $0.13 to $0.32 $0.33 to $0.36

Microchip Technology (NASDAQ:MCHP) Stock Analyst Ratings Date Upside/Downside Analyst Firm Price Target Change Rating Change Previous / Current Rating 02/05/2024 -8.47% Goldman Sachs $87 → $77 Maintains Neutral 02/02/2024 11.73% Stifel $96 → $94 Maintains Buy 02/02/2024 12.92% UBS $105 → $95 Maintains Buy 02/02/2024 -8.47% Goldman Sachs $87 → $77 Maintains Neutral 02/02/2024 18.86% Susquehanna $105 → $100 Maintains Positive 02/02/2024 6.98% Needham $85 → $90 Maintains Buy 01/30/2024 18.86% Rosenblatt → $100 Reiterates Buy → Buy 01/18/2024 24.81% Wolfe Research → $105 Upgrades Peer Perform → Outperform 01/09/2024 10.54% Truist Securities $97 → $93 Maintains Buy 01/09/2024 14.11% Stifel $100 → $96 Maintains Buy 01/04/2024 -4.91% Piper Sandler → $80 Downgrades Overweight → Neutral 11/08/2023 18.86% Citigroup → $100 Upgrades Neutral → Buy 11/03/2023 -4.91% Piper Sandler $100 → $80 Maintains Overweight 11/03/2023 6.98% Susquehanna $95 → $90 Maintains Positive 11/03/2023 6.98% Morgan Stanley $96 → $90 Maintains

Goldman Sachs analyst Toshiya Hari maintains Microchip Technology (NASDAQ:MCHP) with a Neutral and lowers the price target from $87 to $77.

Microchip Technology (NASDAQ:MCHP) Stock Analyst Ratings Date Upside/Downside Analyst Firm Price Target Change Rating Change Previous / Current Rating 02/02/2024 11.64% Stifel $96 → $94 Maintains Buy 02/02/2024 12.83% UBS $105 → $95 Maintains Buy 02/02/2024 -8.55% Goldman Sachs $87 → $77 Maintains Neutral 02/02/2024 18.76% Susquehanna $105 → $100 Maintains Positive 02/02/2024 6.89% Needham $85 → $90 Maintains Buy 01/30/2024 18.76% Rosenblatt → $100 Reiterates Buy → Buy 01/18/2024 24.7% Wolfe Research → $105 Upgrades Peer Perform → Outperform 01/09/2024 10.45% Truist Securities $97 → $93 Maintains Buy 01/09/2024 14.01% Stifel $100 → $96 Maintains Buy 01/04/2024 -4.99% Piper Sandler → $80 Downgrades Overweight → Neutral 11/08/2023 18.76% Citigroup → $100 Upgrades Neutral → Buy 11/03/2023 -4.99% Piper Sandler $100 → $80 Maintains Overweight 11/03/2023 6.89% Susquehanna $95 → $90 Maintains Positive 11/03/2023 6.89% Morgan Stanley $96 → $90 Maintains Overweight 11/03/2023 6.89% Keybanc $95 → $90 Maintains Overweight

Microchip Technology Guides For Q4 EPS of $0.46-$0.68 on Sales of $1.225-$1.425 Billion, Vs CIQ Analyst Consensus of $0.92/Share on Sales of $1.65 Billion.

Microchip Technology (MCHP) reported fiscal Q3 non-GAAP diluted earnings late Thursday of $1.08 per share, down from $1.56 a year earlier. Analysts polled by Capital IQ expected $1.04. Net sales in the quarter ended Dec. 31 were $1.77 billion, down from $2.17 billion a year earlier. Analysts surveyed by Capital IQ expected $1.76 billion. The company said it expects fiscal Q4 non-GAAP diluted EPS of $0.46 to $0.68 and net sales of $1.225 billion to $1.425 billion. Analysts polled by Capital IQ expect normalized EPS of $0.92 and $1.65 billion in revenue. Microchip increased its quarterly dividend to $0.45 per share from $0.439 per share in the previous quarter. The dividend is payable March 8 to shareholders of record on Feb. 23. The company’s shares fell about 2% in recent after-hours activity.

By Denny Jacob Microchip Technology posted a decline in sales in the latest quarter as customers worked to limit their inventory levels. The semiconductor products provider logged net income of $419.2 million, or 77 cents a share, for the third quarter ended Dec. 31, down from $580.3 million, or $1.04 a share, a year earlier. Adjusted earnings were $1.08 a share, above analysts’ estimates of $1.04 a share. Sales declined to $1.77 billion from $2.17 billion, matching expectations of analysts polled by FactSet. Chief Executive Ganesh Moorthy said sales declined nearly 22% sequentially as weak demand drove customers to cut shipments and extend shutdowns to protect their inventory levels, which prevented the company from fulfilling previously planned shipments from its backlog. “We are taking steps to limit discretionary spending and tightly manage inventory levels during this downcycle. As a result, we intend to have two-week shutdowns in our large wafer

Microchip Technology (NASDAQ:MCHP) Stock Analyst Ratings Date Upside/Downside Analyst Firm Price Target Change Rating Change Previous / Current Rating 02/02/2024 8.67% Needham $85 → $90 Maintains Buy 01/30/2024 20.74% Rosenblatt → $100 Reiterates Buy → Buy 01/18/2024 26.78% Wolfe Research → $105 Upgrades Peer Perform → Outperform 01/09/2024 12.29% Truist Securities $97 → $93 Maintains Buy 01/09/2024 15.91% Stifel $100 → $96 Maintains Buy 01/04/2024 -3.4% Piper Sandler → $80 Downgrades Overweight → Neutral 11/08/2023 20.74% Citigroup → $100 Upgrades Neutral → Buy 11/03/2023 -3.4% Piper Sandler $100 → $80 Maintains Overweight 11/03/2023 8.67% Susquehanna $95 → $90 Maintains Positive 11/03/2023 8.67% Morgan Stanley $96 → $90 Maintains Overweight 11/03/2023 8.67% Keybanc $95 → $90 Maintains Overweight 11/03/2023 2.63% Needham $100 → $85 Maintains Buy 10/24/2023 14.71% Susquehanna $100 → $95 Maintains Positive 10/11/2023 15.91% Morgan Stanley $101 → $96 Maintains Overweight 08/07/2023 20.74% Needham → $100 Reiterates Buy →

CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows: We maintain our 12-month target at $80 based on 18x P/E our CY 25 EPS view of $4.45, below peers to reflect more leveraged balance sheet. We lower our FY 24 (Mar.) EPS to $4.92 from $5.39 and FY 25 to $3.58 from $4.77. We start FY 26 at $4.60. MCHP posts Dec-Q EPS of $1.08 vs. $1.56, beating the $1.04 consensus. Sales fell 22% from Sep-Q (-19% Y/Y) and MCHP guided for additional declines in Mar-Q, as it contends with customers sharply curtailing inventories amid end-demand softness. Although we remain cautious about the trajectory of a recovery, we think MCHP is doing a good job cutting operating expenses (-12% from Sep-Q), planning 2-week shutdowns in both Mar-Q and Jun-Q, while lead times have been reduced to