Markets just gave back most of the day from yesterday's historic rally. All thanks to tariff uncertainty with China.
More than a dozen companies swung more than 20% from their lows to their highs in Wednesday's furious rally.
Microchip Technology faces significant challenges, including a 50% revenue drop, declining margins, and high debt levels, making current investment unattractive. The company's heavy reliance on the Asian market and lack of long-term distributor agreements add to its financial instability and market uncertainty. The sustainability of Microchip's dividend is questionable, with free cash flow insufficient to cover payouts, suggesting a potential cut.
Shares of Microchip Technology fell more than 3% on Wednesday after the chipmaker announced plans to raise capital by offering $1.35 billion of convertible stock.
Microchip Technology Incorporated (NASDAQ:MCHP ) Morgan Stanley Technology, Media & Telcom Conference March 3, 2025 12:15 PM ET Company Participants Steve Sanghi - CEO Eric Bjornholt - CFO Conference Call Participants Joe Moore - Morgan Stanley Joe Moore Good morning everybody. Got a full house, so I think we're a little bit early.
Microchip Technology Incorporated (NASDAQ:MCHP ) Business Update Call March 3, 2025 9:00 AM ET Company Participants Steve Sanghi - Chief Executive Officer Eric Bjornholt - Chief Financial Officer Rich Simoncic - Chief Operating Officer Conference Call Participants Vivek Arya - Bank of America Securities Chris Caso - Wolfe Research Tore Svanberg - Stifel William Stein - Truist Joshua Buchalter - TD Cowen Harlan Sur - JPMorgan Joe Moore - Morgan Stanley Christopher Rolland - Susquehanna Financial Craig Ellis - B. Riley Securities Vijay Rakesh - Mizuho Securities David O'Connor - BNP Paribas Operator Greetings, and welcome to Microchip's business update call.
Chipmaker Microchip Technology said on Monday it will cut its workforce by about 2,000 employees as it restructures its business.
Downgrade MCHP to hold due to persistent revenue declines, inventory overhang, and deteriorating margins, with no immediate turnaround in sight. 3Q25 results showed a 42% y/y revenue decline, with gross margin compressing to 54.7% and EBIT margin dropping to 15.7%. Inventory levels remain critically high, impacting revenue growth and margins, with distributors still working through existing stock.
Review Microchip Tech's (MCHP) international revenue performance and how it affects the predictions of financial analysts on Wall Street and the future prospects for the stock.
Microchip Technology's stock was falling after the semiconductor maker kept its dividend flat for first time in four years, reported quarterly sales that fell to a seven-year low and gave an outlook that disappointed.
MCHP's third-quarter fiscal 2025 results suffer from a significant revenue drop, sluggish guidance and demand challenges across key markets.
Microchip Technology Incorporated (NASDAQ:MCHP ) Q3 2025 Earnings Conference Call February 6, 2025 5:00 PM ET Company Participants Steve Sanghi - Chief Executive Officer Eric Bjornholt - Chief Financial Officer Rich Simoncic - Chief Operating Officer Conference Call Participants Vivek Arya - Bank of America Securities Blayne Curtis - Jefferies Harsh Kumar - Piper Sandler Toshiya Hari - Goldman Sachs Vijay Rakesh - Mizuho Securities Chris Danely - Citi Joe Moore - Morgan Stanley Craig Ellis - B. Riley Securities Chris Caso - Wolfe Research Operator Greetings, and welcome to the Microchip's Q3 Fiscal '25 Financial Results Conference Call.