Microchip Technology Earnings Report Tomorrow: Analysts Forecast 39.9% Revenue Decline but Investors Remain Optimistic

Microchip Technology will release its earnings report tomorrow after the market closes. In the last quarter, the company met analysts’ revenue expectations with revenues of $1.77 billion, a decrease of 18.6% year on year. The quarter was considered weak, with disappointing revenue guidance for the next quarter and an increase in inventory levels. To find out if Microchip Technology is a buy or sell going into earnings, check out the original article on StockStory for free.

Analysts are forecasting a 39.9% year-on-year decline in revenue to $1.34 billion for Microchip Technology this quarter, compared to a 21.1% increase in the same quarter last year. Adjusted earnings are expected to be $0.57 per share. The majority of analysts have maintained their estimates in the last 30 days, suggesting stability in the business heading into earnings. Microchip Technology has missed Wall Street’s revenue estimates twice in the last two years.

Investors have been closely watching some peers that have already reported their Q1 results, providing insight into what we can expect from Microchip Technology’s performance this quarter. Impinj saw a 10.6% decrease in revenue year on year, exceeding analysts’ expectations by 4.4%, while ON Semiconductor reported a revenue decline of 4.9%, in line with consensus estimates. Following their results, Impinj saw a 28.8% increase in share price, while ON Semiconductor was up 3.1%.

Despite these insights from peers, investors remain steady going into earnings for Microchip Technology’s Q1 report