Latest news with #MicrochipTechnology
Yahoo
7 days ago
- Business
- Yahoo
Microchip Technology (NasdaqGS:MCHP) Raises Sales Guidance for Fiscal Q1 2026
Microchip Technology has raised its earnings guidance for the fiscal first quarter of 2026, signaling anticipated improved performance, which may have added positive momentum to its stock price during a month where it climbed 27%. This optimistic revision reflects a healthier forecast for consolidated net sales and a reduced expected loss per share, aligning with broader positive market trends. Despite recent market volatility due to geopolitical tensions and tariff discussions, Microchip's proactive stance in financial guidance stood out, possibly contributing to investor confidence against a backdrop of favorable broader market performance where the Nasdaq rose nearly 10%. We've identified 3 possible red flags with Microchip Technology (at least 2 which shouldn't be ignored) and understanding the impact should be part of your investment process. AI is about to change healthcare. These 23 stocks are working on everything from early diagnostics to drug discovery. The best part - they are all under $10b in market cap - there's still time to get in early. The recent upward revision in Microchip Technology's earnings guidance for fiscal Q1 2026 may bolster the company's ongoing transformation efforts. Implementing a broad 9-point efficiency plan, including facility closures and inventory strategies, positions Microchip to capitalize on revenue growth in emergent sectors. However, the challenges of restructuring and high inventory levels present hurdles that could impact short-term operational efficiency and revenue consistency. Over the past five years, Microchip's total shareholder return, including both share price and dividends, was 19.14%. Despite its recent monthly climb, the company's one-year performance lagged the broader US market and the semiconductor industry. Analysts forecast an optimistic outlook, with revenue anticipated to grow annually by 10.7% in the next three years, potentially elevating earnings to US$1.4 billion by May 2028. However, variations in analyst consensus, particularly in price targets, highlight differing expectations for Microchip's capacity to meet these targets consistently. The current share price is US$47.24, translating to a 19.7% discount to the consensus price target of US$58.82. The revised economic outlook and anticipated improved performance may positively influence investor sentiment, aligning more closely with the optimistic analyst forecasts. Nonetheless, reliance on future earnings trajectory amidst operational restructuring suggests careful evaluation of potential risks and impacts on cash flow flexibility. Investors are encouraged to continually scrutinize these dynamics in light of the company's strategic actions and market positions. Learn about Microchip Technology's historical performance here. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include NasdaqGS:MCHP. This article was originally published by Simply Wall St. Have feedback on this article? Concerned about the content? with us directly. Alternatively, email editorial-team@ Error while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data
Wall Street Journal
29-05-2025
- Business
- Wall Street Journal
Microchip Technology Narrows Outlook on Higher Bookings
Microchip Technology MCHP 1.13%increase; green up pointing triangle raised the low ends of its sales and earnings guidance for its fiscal first quarter, thanks to higher-than-expected bookings. The semiconductor provider now expects sales to be $1.045 billion to $1.07 billion in the quarter ending June 30, a tighter range than previous guidance of $1.025 billion to $1.07 billion.
Globe and Mail
29-05-2025
- Business
- Globe and Mail
Microchip Technology Raises Financial Guidance for Sales and EPS for First Quarter of Fiscal Year 2026
CHANDLER, Ariz., May 29, 2025 (GLOBE NEWSWIRE) -- Microchip Technology Incorporated, a leading provider of smart, connected, and secure embedded control solutions, today updated the range of its prior guidance for net Sales and GAAP and non-GAAP earnings per share for its fiscal first quarter of 2026 ending June 30, 2025. Microchip now expects consolidated net sales for the June quarter to be between $1.045 billion and $1.070 billion. Microchip previously provided guidance on May 8, 2025 of consolidated net sales to be between $1.025 billion and $1.070 billion. GAAP loss per share is now expected to be between $(0.11) and $(0.07), and non-GAAP earnings per share is now expected to be between $0.22 and $0.26. The original guidance for the GAAP loss per share was $(0.15) and $(0.07), and the original guidance for non-GAAP earnings per share was between $0.18 and $0.26. Steve Sanghi, Microchip's CEO and President, commented, "With almost two months of the quarter behind us, our business is performing better than we expected at the time of our May 8, 2025 earnings conference call. Our bookings activity for the month of May is tracking to be higher than any month in the last two years. We are gaining confidence in the recovery of our business as we execute on our strategic initiatives, reduce inventory levels and make progress towards our long-term business model." There will be no conference call associated with this press release. Microchip is attending the Stifel 2025 Cross Border 1x1 Conference and the B of A Securities Global Technology Conference on Wednesday June 3, 2025. A live webcast and replays from the B of A Conference will be available at Cautionary Statement: The statements in this release relating to expecting consolidated net sales for the June quarter to be between $1.045 billion and $1.070 billion, GAAP loss per share to be between $(0.11) and $(0.07), non GAAP earnings per share to be between $0.22 and $0.26, that our business is performing better than we expected, that our bookings activity for the month of May is tracking to be higher than any month in the last two years, that we are gaining confidence in the recovery of our business as we execute on our strategic initiatives, reduce inventory levels and make progress towards our long-term business model are forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These statements involve risks and uncertainties that could cause our actual results to differ materially, including, but not limited to: any continued uncertainty, fluctuations or weakness in the U.S. and world economies (including China and Europe) due to changes in the scope and level of tariffs, interest rates or high inflation, actions taken or which may be taken by the Trump administration or the U.S. Congress (including budget and tax legislation), monetary policy, political, geopolitical, trade or other issues in the U.S. or internationally (including the military conflicts in Ukraine-Russia and the Middle East), further changes in demand or market acceptance of our products and the products of our customers and our ability to respond to any increases or decreases in market demand or customer requests to reschedule or cancel orders; the mix of inventory we hold, our ability to satisfy any short-term orders from our inventory and our ability to effectively manage our inventory levels; foreign currency effects on our business; changes in utilization of our manufacturing capacity and our ability to effectively manage our production levels to meet any increases or decreases in market demand or any customer requests to reschedule or cancel orders; the impact of inflation on our business; competitive developments including pricing pressures; the level of orders that are received and can be shipped in a quarter; our ability to realize the expected benefits of our long-term supply assurance program; changes or fluctuations in customer order patterns and seasonality; our ability to effectively manage our supply of wafers from third party wafer foundries to meet any decreases or increases in our needs and the cost of such wafers, our ability to obtain additional capacity from our suppliers to increase production to meet any future increases in market demand; our ability to successfully integrate the operations and employees, retain key employees and customers and otherwise realize the expected synergies and benefits of our acquisitions; the impact of any future significant acquisitions or strategic transactions we may make; the costs and outcome of any current or future litigation or other matters involving our acquisitions (including the acquired business, intellectual property, customers, or other issues); the costs and outcome of any current or future tax audit or investigation regarding our business or our acquired businesses; the impact that the CHIPS Act will have on increasing manufacturing capacity in our industry by providing incentives for us, our competitors and foundries to build new wafer manufacturing facilities or expand existing facilities; the amount and timing of any incentives we may receive under the CHIPS Act, the impact of current and future changes in U.S. corporate tax laws (including the Inflation Reduction Act of 2022 and the Tax Cuts and Jobs Act of 2017); fluctuations in our stock price and trading volume which could impact the number of shares we acquire under our share repurchase program and the timing of such repurchases; disruptions in our business or the businesses of our customers or suppliers due to natural disasters (including any floods in Thailand), terrorist activity, armed conflict, war, worldwide oil prices and supply, public health concerns or disruptions in the transportation system; and general economic, industry or political conditions in the United States or internationally. For a detailed discussion of these and other risk factors, please refer to Microchip's filings on Forms 10-K and 10-Q. You can obtain copies of Forms 10-K and 10-Q and other relevant documents for free at Microchip's website ( or the SEC's website ( or from commercial document retrieval services. Stockholders of Microchip are cautioned not to place undue reliance on our forward-looking statements, which speak only as of the date such statements are made. Microchip does not undertake any obligation to publicly update any forward-looking statements to reflect events, circumstances or new information after this May 8, 2025 press release, or to reflect the occurrence of unanticipated events. About Microchip: Microchip Technology Incorporated is a leading provider of smart, connected and secure embedded control solutions. Its easy-to-use development tools and comprehensive product portfolio enable customers to create optimal designs, which reduce risk while lowering total system cost and time to market. Our solutions serve approximately 109,000 customers across the industrial, automotive, consumer, aerospace and defense, communications and computing markets. Headquartered in Chandler, Arizona, Microchip offers outstanding technical support along with dependable delivery and quality. For more information, visit the Microchip website at Note: The Microchip name and logo are registered trademarks of Microchip Technology Incorporated in the U.S.A. and other countries. All other trademarks mentioned herein are the property of their respective companies.
Yahoo
28-05-2025
- Business
- Yahoo
1 High-Flying Stock with Impressive Fundamentals and 2 to Keep Off Your Radar
Expensive stocks typically earn their valuations through superior growth rates that other companies simply can't match. The flip side though is that these lofty expectations make them particularly susceptible to drawdowns when market sentiment shifts. Separating true intrinsic value from speculation isn't easy, especially during bull markets. That's where StockStory comes in - to help you find high-quality companies that will stand the test of time. That said, here is one high-flying stock expanding its competitive advantage and two with big downside risk. Forward P/E Ratio: 52x Spun out from General Instrument in 1987, Microchip Technology (NASDAQ: MCHP) is a leading provider of microcontrollers and integrated circuits used mainly in the automotive world, especially in electric vehicles and their charging devices. Why Is MCHP Risky? Products and services are facing significant end-market challenges during this cycle as sales have declined by 3.6% annually over the last five years Operating margin declined by 11.6 percentage points over the last five years as its sales cratered Free cash flow margin dropped by 16 percentage points over the last five years, implying the company became more capital intensive as competition picked up Microchip Technology is trading at $59.18 per share, or 52x forward P/E. To fully understand why you should be careful with MCHP, check out our full research report (it's free). Forward P/E Ratio: 33.1x With engineering centers across the Americas, Europe, and India serving Fortune 1000 companies, Grid Dynamics (NASDAQ:GDYN) provides technology consulting, engineering, and analytics services to help large enterprises modernize their technology systems and business processes. Why Does GDYN Worry Us? Revenue base of $371.2 million puts it at a disadvantage compared to larger competitors exhibiting economies of scale Incremental sales over the last two years were much less profitable as its earnings per share fell by 8.5% annually while its revenue grew Push for growth has led to negative returns on capital, signaling value destruction Grid Dynamics's stock price of $12.50 implies a valuation ratio of 33.1x forward P/E. Check out our free in-depth research report to learn more about why GDYN doesn't pass our bar. Forward P/S Ratio: 11.2x Short for microcomputer software, Microsoft (NASDAQ:MSFT) is the largest software vendor in the world with its Windows operating system, Office suite, and cloud computing services. Why Are We Bullish on MSFT? Microsoft is one of the great brands not just in tech but all of business. It produces mission-critical software and bundles it together, resulting in cream-of-the-crop gross margins. The company's elite unit economics lead to robust profit margins that improve over time. This speaks to the scale advantages and operating efficiency across its diverse portfolio, which spans everything from Office and Azure to Minecraft. Microsoft has a virtuous cycle of returns. Its dominant market position enables it to generate strong free cash flow, and it reinvests these funds into promising ventures that further strengthen its competitive moat. At $460.25 per share, Microsoft trades at 32.5x forward price-to-earnings. Is now the right time to buy? See for yourself in our comprehensive research report, it's free. Donald Trump's victory in the 2024 U.S. Presidential Election sent major indices to all-time highs, but stocks have retraced as investors debate the health of the economy and the potential impact of tariffs. While this leaves much uncertainty around 2025, a few companies are poised for long-term gains regardless of the political or macroeconomic climate, like our Top 9 Market-Beating Stocks. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025). Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-small-cap company Exlservice (+354% five-year return). Find your next big winner with StockStory today for free. Sign in to access your portfolio
Yahoo
27-05-2025
- Business
- Yahoo
Microchip Technology, Marvell Technology, onsemi, Amplitude, and Genesco Shares Are Soaring, What You Need To Know
A number of stocks jumped in the afternoon session after the major indices rebounded (Nasdaq +2.0%, S&P 500 +2.0%) as President Trump postponed the planned 50% tariff on European Union imports, shifting the start date to July 9, 2025. Companies with substantial business ties to Europe likely had some relief as the delay reduced near-term cost pressures and preserved cross-border demand. The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks. Among others, the following stocks were impacted: Analog Semiconductors company Microchip Technology (NASDAQ:MCHP) jumped 5.3%. Is now the time to buy Microchip Technology? Access our full analysis report here, it's free. Semiconductor Manufacturing company Marvell Technology (NASDAQ:MRVL) jumped 7.8%. Is now the time to buy Marvell Technology? Access our full analysis report here, it's free. Analog Semiconductors company onsemi (NASDAQ:ON) jumped 6.1%. Is now the time to buy onsemi? Access our full analysis report here, it's free. Data Analytics company Amplitude (NASDAQ:AMPL) jumped 5.4%. Is now the time to buy Amplitude? Access our full analysis report here, it's free. Footwear company Genesco (NYSE:GCO) jumped 5.4%. Is now the time to buy Genesco? Access our full analysis report here, it's free. Marvell Technology's shares are extremely volatile and have had 39 moves greater than 5% over the last year. In that context, today's move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business. The biggest move we wrote about over the last year was 6 months ago when the stock gained 22.6% on the news that the company reported strong third-quarter 2024 results that exceeded Wall Street's sales and earnings expectations. Sales grew by 19% sequentially amid unwavering AI demand, particularly in data center end markets. In addition, Marvell expected to significantly exceed the guide of $1.5B for AI revenue for the year and was optimistic about achieving its $2.5 billion target for FY26. Looking ahead, its full-year revenue and EPS guidance also exceeded consensus estimates. Zooming out, we think this was a good quarter with some key areas of upside. Additionally, CEO Matt Murphy addressed speculation about a potential move to Intel, firmly stating he was "All In" on Marvel. This dispelled any uncertainty that could stem from his potential exit, at least in the short term. Marvell Technology is down 42.7% since the beginning of the year, and at $65.03 per share, it is trading 48.4% below its 52-week high of $126.06 from January 2025. Investors who bought $1,000 worth of Marvell Technology's shares 5 years ago would now be looking at an investment worth $2,118. Here at StockStory, we certainly understand the potential of thematic investing. Diverse winners from Microsoft (MSFT) to Alphabet (GOOG), Coca-Cola (KO) to Monster Beverage (MNST) could all have been identified as promising growth stories with a megatrend driving the growth. So, in that spirit, we've identified a relatively under-the-radar profitable growth stock benefiting from the rise of AI, available to you FREE via this link. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
