Microchip Technology (NASDAQ:MCHP) Releases Q1 2025 Earnings Guidance

Microchip Technology (NASDAQ:MCHP) updated its first quarter 2025 earnings guidance on Monday. The company provided earnings per share guidance of 0.480-0.560 for the period, compared to the consensus earnings per share estimate of 0.580. The company issued revenue guidance of $1.2 billion-$1.3 billion, compared to the consensus revenue estimate of $1.3 billion. Microchip Technology also updated its Q1 guidance to $0.48-0.56 EPS.

Microchip Technology Stock Performance

Shares of Microchip Technology stock traded down $0.02 on Thursday, reaching $91.97. The stock had a trading volume of 526,574 shares, compared to its average volume of 5,578,236. The company has a debt-to-equity ratio of 0.57, a quick ratio of 0.58 and a current ratio of 0.98. The business’s 50-day moving average price is $88.45 and its two-hundred day moving average price is $85.37. The stock has a market cap of $49.70 billion, a P/E ratio of 21.38, a price-to-earnings-growth ratio of 2.79 and a beta of 1.60. Microchip Technology has a fifty-two week low of $68.75 and a fifty-two week high of $96.14.

Microchip Technology (NASDAQ:MCHP) last released its earnings results on Monday, May 6th. The semiconductor company reported $0.57 earnings per share for the quarter, hitting analysts’ consensus estimates of $0.57. The firm had revenue of $1.33 billion during the quarter, compared to analyst estimates of $1.33 billion. Microchip Technology had a net margin of 27.59% and a return on equity of 45.59%. The business’s revenue was down 40.6% on a year-over-year basis. During the same quarter in the previous year, the business earned $1.56 EPS. On average, sell-side analysts forecast that Microchip Technology will post 4.64 EPS for the current year.

Microchip Technology Increases Dividend

The business also recently announced a quarterly dividend, which will be paid on Wednesday, June 5th. Investors of record on Wednesday, May 22nd will be paid a dividend of $0.452 per share. This is a boost from Microchip Technology’s previous quarterly dividend of $0.45. This represents a $1.81 annualized dividend and a yield of 1.97%. The ex-dividend date of this dividend is Tuesday, May 21st. Microchip Technology’s dividend payout ratio is presently 42.06%.

Analysts Set New Price Targets

Several equities analysts recently issued reports on MCHP shares. Evercore ISI started coverage on Microchip Technology in a research note on Tuesday, April 16th. They set an outperform rating and a $106.00 price target on the stock. Truist Financial upped their price target on Microchip Technology from $93.00 to $96.00 and gave the company a buy rating in a research report on Tuesday. TD Cowen upped their price target on shares of Microchip Technology from $80.00 to $90.00 and gave the stock a hold rating in a research report on Tuesday. Susquehanna raised their target price on shares of Microchip Technology from $100.00 to $105.00 and gave the company a positive rating in a research note on Tuesday. Finally, Wolfe Research raised shares of Microchip Technology from a peer perform rating to an outperform rating and set a $105.00 price target for the company in a report on Thursday, January 18th. Six analysts have rated the stock with a hold rating and twelve have given a buy rating to the stock. Based on data from MarketBeat.com, Microchip Technology currently has an average rating of Moderate Buy and a consensus price target of $98.47.

Insiders Place Their Bets

In other news, CFO James Eric Bjornholt sold 1,970 shares of the stock in a transaction dated Friday, February 23rd. The stock was sold at an average price of $83.90, for a total transaction of $165,283.00. Following the transaction, the chief financial officer now directly owns 32,893 shares in the company, valued at approximately $2,759,722.70. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through the SEC website. Company insiders own 2.07% of the company’s stock.

Microchip Technology Company Profile

Microchip Technology Incorporated develops, manufactures, and sells smart, connected, and secure embedded control solutions in the Americas, Europe, and Asia. The company offers general purpose 8-bit, 16-bit, and 32-bit microcontrollers; 32-bit embedded mixed-signal microprocessors; and specialized microcontrollers for automotive, industrial, computing, communications, lighting, power supplies, motor control, human machine interface, security, wired connectivity, and wireless connectivity applications.