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Microchip (MCHP)
NASDAQ:MCHP
Earnings Data
Report Date
May 12, 2025TBA Not Confirmed
Period Ending
2025 (Q4)Consensus EPS Forecast
0.1Last Year’s EPS
0.57Same Quarter Last Year
Moderate Buy
Based on 18 Analysts Ratings
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Earnings Call Summary
Earnings Call Date:Feb 06, 2025
|% Change Since: 19.73%
|Next Earnings Date:May 12, 2025
Earnings Call Sentiment|Neutral
The earnings call presented a mix of strategic advancements and financial challenges. While there were notable product introductions and effective debt management, significant revenue declines and inventory management issues posed substantial challenges. The sentiment reflects a cautious outlook with a focus on recovery and strategic adjustments.Company Guidance
In Microchip Technology Incorporated's Q3 Fiscal 2025 financial results call, Steve Sanghi, the CEO, announced several strategic measures to address the company's current challenges and set the stage for future growth. The company plans to close its Tempe fab, known as fab two, to resize its manufacturing footprint, with 70% of products already qualified at alternate facilities. Inventory reduction is a key focus, with plans to decrease inventory from 266 days at the end of December 2024 to a target of 130-150 days by fiscal year-end 2026, potentially freeing up $250 million in cash. Net sales for Q3 were $1.026 billion, with gross margins at 55.4% on a non-GAAP basis, including $42.7 million in capacity underutilization charges. Operating expenses were at 34.9% of net sales, while non-GAAP net income was $107.3 million. The company provided guidance for Q4 fiscal year 2025, projecting net sales between $920 million and $1 billion, non-GAAP gross margins between 54% and 55%, and non-GAAP diluted earnings per share between $0.05 and $0.15. The company is committed to maintaining its dividend, despite a short-term gap in free cash flow coverage, and expects improvements as inventory levels normalize and operational efficiencies are realized.Introduction of New 64-bit RISC-V Processors
Microchip Technology introduced a new generation of 64-bit RISC-V processors featuring advanced AI capabilities, integrated time-sensitive networking, and next-generation security, with strong initial customer response.
Expansion of Wi-Fi Portfolio
20 new products were added to the Wi-Fi portfolio, expanding microcontrollers and plug-and-play modules to simplify robust, secure wireless connectivity.
High Gross Margin Despite Low Utilization
Non-GAAP gross margin was reported at 55.4%, and even for the current quarter, the midpoint guidance was 53%, which is considered strong relative to competitors.
Debt Management and Refinancing
Microchip retired $665.5 million in convertible bonds and issued $2 billion in investment-grade bonds, effectively managing its debt maturity schedule.
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MCHP Earnings History
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat
Missed
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MCHP Earnings-Related Price Changes
Report Date | Price 1 Day Before | Price 1 Day After | Percentage Change |
|---|---|---|---|
| Feb 06, 2025 | $53.11 | $51.89 | -2.30% |
| Nov 05, 2024 | $74.58 | $73.24 | -1.80% |
| Aug 01, 2024 | $83.33 | $74.50 | -10.60% |
| May 06, 2024 | $92.17 | $90.50 | -1.81% |
Earnings announcements can affect a stock’s price. This table shows the stock's price the day before and the day after recent earnings reports, including the percentage change.
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FAQ
When does Microchip (MCHP) report earnings?
Microchip (MCHP) is schdueled to report earning on May 12, 2025, TBA Not Confirmed.
What is Microchip (MCHP) earnings time?
Microchip (MCHP) earnings time is at May 12, 2025, TBA Not Confirmed.
Where can I see when companies are reporting earnings?
You can see which companies are reporting today on our designated earnings calendar.
What companies are reporting earnings today?
You can see a list of the companies which are reporting today on TipRanks earnings calendar.
What is MCHP EPS forecast?
MCHP EPS forecast for the fiscal quarter 2025 (Q4) is 0.1.
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