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.
Although the revenue and EPS for Microchip Tech (MCHP) give a sense of how its business performed in the quarter ended December 2024, it might be worth considering how some key metrics compare with Wall Street estimates and the year-ago numbers.
Microchip Technology (MCHP) came out with quarterly earnings of $0.20 per share, missing the Zacks Consensus Estimate of $0.28 per share. This compares to earnings of $1.08 per share a year ago.
Chipmaker Microchip Technology forecast fourth-quarter net sales and profit below Wall Street estimates on Thursday, anticipating tepid demand as customers in the automotive market still work on clearing excess inventory.
MCHP's third-quarter fiscal 2025 results are likely to reflect the negative impacts of a weak demand environment, excess inventory and macro uncertainty.
Besides Wall Street's top -and-bottom-line estimates for Microchip Tech (MCHP), review projections for some of its key metrics to gain a deeper understanding of how the company might have fared during the quarter ended December 2024.
Microchip Tech (MCHP) doesn't possess the right combination of the two key ingredients for a likely earnings beat in its upcoming report. Get prepared with the key expectations.
Microchip Technology struggles with high inventory, declining demand and ongoing macroeconomic challenges.
Microchip is experiencing a sharp deterioration of its end markets. Its client's end distributors overstocked their inventories during the post-COVID period. While the sales bottom could have been hit, the following quarterly guidance doesn't anticipate a rebound either. The management is cutting costs and lowering CAPEX to remain Free Cash Flow positive.
MCHP's MTCH2120 touch controller offers low-power, water-tolerant performance, integrating with a full ecosystem to speed development and time to market.