Microchip Technology (Nasdaq: MCHP) reported earnings on May 2. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended March 31 (Q4), Microchip Technology met expectations on revenues and beat slightly on earnings per share.

Compared to the prior-year quarter, revenue dropped and GAAP earnings per share contracted significantly.

Margins contracted across the board.

Revenue details
Microchip Technology recorded revenue of $338.9 million. The 15 analysts polled by S&P Capital IQ expected to see revenue of $340.9 million on the same basis. GAAP reported sales were 11% lower than the prior-year quarter's $380.0 million.

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Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
EPS came in at $0.46. The 14 earnings estimates compiled by S&P Capital IQ averaged $0.45 per share. GAAP EPS of $0.39 for Q4 were 37% lower than the prior-year quarter's $0.62 per share.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 57.2%, 220 basis points worse than the prior-year quarter. Operating margin was 28.2%, 460 basis points worse than the prior-year quarter. Net margin was 23.8%, 920 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $359.6 million. On the bottom line, the average EPS estimate is $0.48.

Next year's average estimate for revenue is $1.50 billion. The average EPS estimate is $2.05.

Investor sentiment
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 302 members out of 321 rating the stock outperform, and 19 members rating it underperform. Among 94 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 93 give Microchip Technology a green thumbs-up, and one gives it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Microchip Technology is hold, with an average price target of $38.31.

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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.