In its upcoming report, Microchip Technology (MCHP) is predicted by Wall Street analysts to post quarterly earnings of $0.33 per share, reflecting a decline of 28.3% compared to the same period last year. Revenues are forecasted to be $1.13 billion, representing a year-over-year decrease of 2.7%.
The current level reflects a downward revision of 0.4% 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 release, it is of utmost importance to factor in any revisions made to the earnings projections. These revisions serve as a critical gauge for predicting potential investor behaviors with respect to the stock. Empirical studies consistently reveal a strong link between trends in earnings estimate revisions and the short-term price performance of a stock.
While investors usually depend on consensus earnings and revenue estimates to assess the business performance for the quarter, delving into analysts' forecasts for certain key metrics often provides a more comprehensive understanding.
That said, let's delve into the average estimates of some Microchip Tech metrics that Wall Street analysts commonly model and monitor.
Analysts' assessment points toward 'Net Sales- Mixed-signal Microcontrollers' reaching $560.90 million. The estimate points to a change of -5.7% from the year-ago quarter.
According to the collective judgment of analysts, 'Net Sales- Other' should come in at $250.71 million. The estimate points to a change of -9.5% from the year-ago quarter.
Analysts predict that the 'Net Sales- Analog' will reach $319.70 million. The estimate suggests a change of +9.5% year over year.
View all Key Company Metrics for Microchip Tech here>>>
Shares of Microchip Tech have experienced a change of -6.3% in the past month compared to the +2.1% move of the Zacks S&P 500 composite. With a Zacks Rank #3 (Hold), MCHP is expected to mirror the overall market performance in the near future. 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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