Microchip beats by $0.03, beats on revs; guides Q2 EPS below consensus, revs below consensus
4:22 PM ET 8/7/25 | Briefing.com
Reports Q1 (Jun) earnings of $0.27 per share, excluding non-recurring items, $0.03 better than the FactSet Consensus of $0.24; revenues fell 13.3% year/year to $1.08 bln vs the $1.06 bln FactSet Consensus. Co issues downside guidance for Q2, sees EPS of $0.30-0.36, excluding non-recurring items, vs. $0.31 FactSet Consensus; sees Q2 revs of $1.11-1.15 bln vs. $1.13 bln FactSet Consensus.
 Microchip Q1 sales, profit beat estimates on demand from cloud providersReuters - 43 minutes ago
Overview * Microchip fiscal Q1 2026 sales of $1.0755 bln beat analyst expectations * Adjusted EPS of $0.27 for fiscal Q1 exceeds analyst estimates, per LSEG data * Company reduced inventory by $124.4 mln, improving working capital efficiency Outlook * Microchip expects Q2 net sales of $1.110 bln to $1.150 bln * Company anticipates Q2 GAAP gross profit of 54.3% to 56.2% * Microchip forecasts Q2 non-GAAP EPS of $0.30 to $0.36 * Capital expenditures for fiscal 2026 expected below $100 mln Result Drivers * INVENTORY REDUCTION - Co reduced inventory by $124.4 mln, improving working capital efficiency * STRATEGIC IMPERATIVES - Execution of strategic imperatives under recovery plan drove sequential revenue growth * DESIGN WINS - Secured design wins with tier-one cloud providers for AI infrastructure and defense applications Key Details Metric Beat/Mis Actual Consensu s s Estimate Q1 Sales Beat $1.08 $1.06 bln bln (19 Analysts ) Q1 Beat $0.27 $0.24 Adjusted (21 EPS Analysts ) Q1 EPS -$0.09 Q1 Beat $154.70 $133.40 Adjusted mln mln (18 Net Analysts Income ) Q1 Net -$46.40 Income mln Analyst Coverage * The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 19 "strong buy" or "buy", 7 "hold" and no "sell" or "strong sell" * The average consensus recommendation for the semiconductors peer group is "buy" * Wall Street's median 12-month price target for Microchip Technology Inc ( MCHP ) is $75.00, about 11.8% above its August 6 closing price of $66.17 * The stock recently traded at 37 times the next 12-month earnings vs. a P/E of 39 three months ago Press Release: (This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journali |
