Microchip is often thought of as a bellweather stock for the chip sector since it supplies so many small but important nuts and bolts in electronic devices.
Press Release: Microchip Technology Narrows Financial Guidance for Fourth Quarter Fiscal 2019
DOW JONES & COMPANY, INC. 4:15 PM ET 3/5/2019
Symbol Last Price Change |
| MCHP | 87.27 | -1.3 (-1.47%) | | QUOTES AS OF 04:00:00 PM ET 03/05/2019 |
Microchip Technology Narrows Financial Guidance for Fourth Quarter Fiscal 2019
CHANDLER, Ariz., March 05, 2019 (GLOBE NEWSWIRE) -- -- Microchip Technology Incorporated(MCHP), a leading broad line semiconductor supplier of smart, connected and secure embedded control solutions, today narrowed the range of its prior guidance for net sales and GAAP and non-GAAP earnings per share for its fiscal fourth quarter of 2019 ending March 31, 2019. Microchip previously provided guidance on February 5, 2019 for consolidated net sales to be $1.251 billion to $1.403 billion or down 9% to up 2% sequentially, with a midpoint of down 3.5%. Microchip now expects consolidated net sales for the March quarter to be $1.279 billion to $1.375 billion, or flat to down 7% sequentially with an unchanged mid-point of down 3.5%. GAAP earnings per share is now expected to be between $0.21 and $0.38 and non-GAAP earnings per share is expected to be between $1.30 and $1.49. The original guidance for GAAP earnings per share was $0.18 to $0.41 and the original guidance for non-GAAP earning per share was between $1.26 and $1.53. We are not able to predict whether inventory at our distributors will increase or decrease and are therefore providing a relatively broad range of revenue guidance. We continue to manage our business internally based on end-market demand. Consistent with our February 5, 2019 guidance, we are not able to estimate the amount of Special Charges and Other, and therefore our estimate of GAAP earnings per share excludes any such amounts.
"The March 2019 quarter is tracking towards our original guidance provided on February 5, 2019," said Steve Sanghi, Microchip's CEO. "We are narrowing the range of our net sales and earnings per share guidance around the previously provided mid-point. Based on the latest information available to us and our discussions with our distributors and customers, we reconfirm our belief that barring any negative developments in the trade relations between the U.S. and China that the March 2019 quarter will mark the bottom of the current cycle for Microchip."
There will be no conference call associated with this press release. |
