Microchip Technology Reports Disappointing Earnings

Microchip Technology Inc. faced significant losses in Q3, reporting -$53.6 million. Although adjusted EPS was higher at $0.20, it fell short of analysts' expectations of $0.28. This downturn suggests potential challenges ahead, making investors wary.

Date: 06-02-2025

AI Rating: 4

Earnings Per Share (EPS): Microchip Technology Inc. reported an EPS of -$0.10 for Q3, a stark decline compared to $0.77 from the same period last year. This negative EPS indicates a significant drop in profitability and could concern investors about the company's financial health.

Revenue Growth: The company generated revenue of $1.026 billion, down from $1.765 billion in the same quarter last year. This nearly 42% decrease in revenue growth raises alarms about demand and overall business performance.

Guidance: Looking ahead, the company has provided EPS guidance for the next quarter ranging from $0.05 to $0.15, which is considerably lower than the previous quarter's results and below the current adjusted EPS of $0.20. Additionally, the revenue guidance is between $920 million to $1 billion, suggesting a continued downturn.

Stocks: MCHP