Microchip Technology (MCHP) Beats Q2 Earnings and Revenue Estimates

Core Viewpoint - Microchip Technology reported quarterly earnings of $0.46 per share, exceeding the Zacks Consensus Estimate of $0.43 per share, but down from $1.62 per share a year ago, indicating a significant decline in profitability [1][2] Financial Performance - The company achieved revenues of $1.16 billion for the quarter ended September 2024, surpassing the Zacks Consensus Estimate by 1.09%, but down from $2.25 billion year-over-year [2] - Over the last four quarters, Microchip Technology has surpassed consensus EPS estimates three times [2] - The earnings surprise for the recent quarter was 6.98%, while the previous quarter had a surprise of 1.92% [1][2] Stock Performance - Microchip Technology shares have declined approximately 17.4% since the beginning of the year, contrasting with the S&P 500's gain of 19.8% [3] - The current Zacks Rank for the stock is 4 (Sell), indicating expectations of underperformance in the near future [6] Future Outlook - The consensus EPS estimate for the upcoming quarter is $0.48 on revenues of $1.2 billion, and for the current fiscal year, it is $2.01 on revenues of $4.87 billion [7] - The estimate revisions trend for Microchip Technology has been unfavorable ahead of the earnings release, which may impact future stock movements [6][5] Industry Context - The Semiconductor - Analog and Mixed industry is currently ranked in the bottom 42% of over 250 Zacks industries, suggesting a challenging environment for companies within this sector [8]