The 10-second takeaway
For the quarter ended March 31 (Q4), Microchip Technology met expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue increased significantly. Non-GAAP earnings per share grew. GAAP earnings per share shrank significantly.
Margins contracted across the board.
Microchip Technology chalked up revenue of $430.1 million. The 16 analysts polled by S&P Capital IQ looked for revenue of $427.0 million on the same basis. GAAP reported sales were 27% higher than the prior-year quarter's $338.9 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.52. The 16 earnings estimates compiled by S&P Capital IQ averaged $0.47 per share. Non-GAAP EPS of $0.52 for Q4 were 13% higher than the prior-year quarter's $0.46 per share. GAAP EPS of $0.28 for Q4 were 28% lower than the prior-year quarter's $0.39 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 55.6%, 50 basis points worse than the prior-year quarter. Operating margin was 14.9%, much worse than the prior-year quarter. Net margin was 13.9%, 990 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $447.5 million. On the bottom line, the average EPS estimate is $0.50.
Next year's average estimate for revenue is $1.86 billion. The average EPS estimate is $2.20.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 307 members out of 326 rating the stock outperform, and 19 members rating it underperform. Among 96 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 95 give Microchip Technology a green thumbs-up, and one give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Microchip Technology is outperform, with an average price target of $38.06.
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