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Microchip (MCHP)
NASDAQ:MCHP
Earnings Data
Report Date
Aug 05, 2025TBA Not Confirmed
Period Ending
2026 (Q1)Consensus EPS Forecast
0.22Last Year’s EPS
0.53Same Quarter Last Year
Strong Buy
Based on 19 Analysts Ratings
Earnings Call Summary
Earnings Call Date:May 08, 2025
|% Change Since: 32.63%
|Next Earnings Date:Aug 05, 2025
Earnings Call Sentiment|Neutral
The earnings call reflected a company in transition, showing promising signs of recovery and strategic realignment, particularly in inventory management and customer relationships. However, the financial performance still faces challenges with declining revenues and operating losses. The positive book-to-bill ratio and strategic market growth provide optimism for future quarters.Company Guidance
During the Microchip Q4 and FY 2025 Financial Results Conference Call, the company provided guidance for the upcoming fiscal year 2026. They anticipate net sales for the June quarter to be around $1.045 billion, plus or minus $25 million, marking an increase from the previous quarter. The non-GAAP gross margin is expected to be between 52.2% and 54.2%, while non-GAAP operating expenses are projected to be between 33.4% and 34.8% of sales. Operating profit is anticipated to range from 17.4% to 20.8% of sales, with diluted earnings per share expected between $0.18 and $0.26. The company also highlighted their intention to continue reducing inventory, aiming to lower it by over $350 million by the end of fiscal year 2026, which will help improve cash flow. They also noted that the book-to-bill ratio in the March quarter was a healthy 1.07, indicating strong demand and a positive outlook for the future.Effective Inventory Management
Inventory was reduced from 266 days in December 2024 to 251 days in March 2025. The goal is to reduce inventory by over $350 million by March 31, 2026.
Improvement in Customer Relationships
78% of previously deteriorated customer relationships have been restored to approved or preferred status, leaving only 2.6% requiring further effort.
Strong Financial Leverage
With a $74.5 million increase in net sales projected for the June quarter, 85% of it is expected to fall to the bottom line as non-GAAP operating profit.
Positive Book-to-Bill Ratio
The book-to-bill ratio was 1.07 in the March quarter, signaling strong future demand.
Strategic Product Developments
Investments in next-generation technologies like the Switchtec PCIe switches and ARM-based microprocessors are driving innovation in various markets.
Aerospace and Defense Market Growth
Aerospace and defense segment has grown to 17-18% of business, driven by increased defense spending globally.
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
MCHP Earnings-Related Price Changes
Report Date | Price 1 Day Before | Price 1 Day After | Percentage Change |
|---|---|---|---|
May 08, 2025 | $48.76 | $54.90 | +12.59% |
Feb 06, 2025 | $52.31 | $51.11 | -2.29% |
Nov 05, 2024 | $73.45 | $72.14 | -1.78% |
Aug 01, 2024 | $82.08 | $73.38 | -10.60% |
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.
FAQ
When does Microchip (MCHP) report earnings?
Microchip (MCHP) is schdueled to report earning on Aug 05, 2025, TBA Not Confirmed.
What is Microchip (MCHP) earnings time?
Microchip (MCHP) earnings time is at Aug 05, 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 2026 (Q1) is 0.22.