Microchip Technology Reports Loss; Stock Declines 6.9%

Shares of Microchip Technology (MCHP) fell sharply after the company reported a significant loss for its third quarter, leading to concerns over future earnings. The outlook for the fourth quarter remains bleak as losses are projected.

Date: 07-02-2025

AI Rating: 4

Earnings Per Share (EPS)
Microchip Technology reported an adjusted EPS of $0.20 for Q3, which is significantly lower than the EPS of $1.08 from the same quarter last year. Analysts expected an EPS of $0.28, indicating that the company did not meet expectations.

Revenue Decline
There was a substantial decline in revenue, which fell by 42% to $1.026 billion from $1.765 billion in the same quarter the previous year. Such a sharp decrease can negatively affect investor sentiment and stock performance.

Projected Losses
The outlook is pessimistic, with projected losses between $79.4 million and $128.5 million for the upcoming quarter and an expected loss per share of $0.14 to $0.24. This reinforces concerns about the company's financial health going forward.

Dividend Declaration
Despite the losses, the Board of Directors declared a quarterly cash dividend of 45.5 cents per share, a 1.1% increase from the previous year. While this shows some commitment to returning value to shareholders, it may not offset the negative sentiment surrounding the significant losses.

Stocks: MCHP