Microchip Technology (MCHP) Q2 Earnings: What To Expect

Analog chipmaker Microchip Technology (NASDAQ:MCHP) will be announcing earnings results this Thursday after the bell. Here’s what you need to know.

Microchip Technology beat analysts’ revenue expectations by 1% last quarter, reporting revenues of $970.5 million, down 26.8% year on year. It was a mixed quarter for the company, with an impressive beat of analysts’ EPS estimates but revenue guidance for next quarter slightly missing analysts’ expectations.

Is Microchip Technology a buy or sell going into earnings? Read our full analysis here, it’s free.

This quarter, analysts are expecting Microchip Technology’s revenue to decline 14.8% year on year to $1.06 billion, improving from the 45.8% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.24 per share.

The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Microchip Technology has missed Wall Street’s revenue estimates five times over the last two years.

Looking at Microchip Technology’s peers in the analog semiconductors segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Skyworks Solutions delivered year-on-year revenue growth of 6.6%, beating analysts’ expectations by 2.6%, and Impinj reported a revenue decline of 4.5%, topping estimates by 4.3%. Impinj traded up 26.2% following the results.

Read our full analysis of Skyworks Solutions’s results here and Impinj’s results here.

Investors in the analog semiconductors segment have had steady hands going into earnings, with share prices flat over the last month. Microchip Technology is down 5.9% during the same time and is heading into earnings with an average analyst price target of $75.21 (compared to the current share price of $67.28).

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