Microchip misses by $0.08, misses on revs; guides Q4 EPS below consensus, revs below consensus
4:23 PM ET 2/6/25 | Briefing.com
Reports Q3 (Dec) earnings of $0.20 per share, excluding non-recurring items, $0.08 worse than the FactSet Consensus of $0.28 and company guidance of $0.25; revenues fell 41.9% year/year to $1.03 bln vs the $1.05 bln FactSet Consensus and company guidance of $1.025 bln."Our December quarter performance reflects the need for the decisive steps we are taking to realign our business, as revenue declined to $1.026 billion and inventory levels reached 266 days," said Steve Sanghi, Microchip's CEO and President. "Since returning as CEO in November, we have already initiated several key actions, including restructuring our manufacturing footprint, adjusting our channel strategy and intensifying our customer engagement. Our initial assessment indicates clear areas for operational enhancement, and we are taking a methodical yet urgent approach to evaluating all aspects of our business and implementing necessary changes to strengthen our competitive position." Mr. Sanghi concluded, "While we have seen substantial inventory destocking at our customers and channel partners, we believe the correction cycle is still not completed. Our March quarter bookings are running at a higher rate than December, though overall levels remain low."Co issues downside guidance for Q4, sees EPS of $0.05-0.15, excluding non-recurring items, vs. $0.28 FactSet Consensus; sees Q4 revs of $0.92-1.00 bln vs. $1.05 bln FactSet Consensus. |
