Wall Street analysts forecast that Microchip Technology (MCHP) will report quarterly earnings of $0.24 per share in its upcoming release, pointing to a year-over-year decline of 54.7%. It is anticipated that revenues will amount to $1.05 billion, exhibiting a decrease of 15.1% compared to the year-ago quarter.
The current level reflects an upward revision of 1.4% in the consensus EPS estimate for the quarter over the past 30 days. This demonstrates how the analysts covering the stock have collectively reappraised their initial projections over this period.
Prior to a company's earnings announcement, it is crucial to consider revisions to earnings estimates. This serves as a significant indicator for predicting potential investor actions regarding the stock. Empirical research has consistently demonstrated a robust correlation between trends in earnings estimate revision and the short-term price performance of a stock.
While investors typically use consensus earnings and revenue estimates as indicators of quarterly business performance, exploring analysts' projections for specific key metrics can offer valuable insights.
Bearing this in mind, let's now explore the average estimates of specific Microchip Tech metrics that are commonly monitored and projected by Wall Street analysts.
According to the collective judgment of analysts, 'Net Sales- Mixed-signal Microcontrollers' should come in at $525.59 million. The estimate suggests a change of -18.5% year over year.
The average prediction of analysts places 'Net Sales- Other' at $243.63 million. The estimate indicates a change of -8.4% from the prior-year quarter.
Analysts predict that the 'Net Sales- Analog' will reach $281.86 million. The estimate indicates a year-over-year change of -14.7%.
View all Key Company Metrics for Microchip Tech here>>>
Over the past month, Microchip Tech shares have recorded returns of -9.2% versus the Zacks S&P 500 composite's +0.6% change. Based on its Zacks Rank #2 (Buy), MCHP will likely outperform the overall market in the upcoming period. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .
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Microchip Technology Incorporated (MCHP): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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