Leading semiconductor manufacturer
Microchip Technology Inc.
) recently revised its first quarter fiscal 2014 guidance to
better reflect an improving business environment and strong
earnings potential with increased bookings.
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Microchip currently anticipates GAAP net sales between $447.4
million and $460.3 million, while gross margin is expected to be
in the range of 56.3% to 56.8%. GAAP net income is anticipated to
be in the range of $67.9 million to $76.4 million, with earnings
per share of 32 to 36 cents.
Concurrent with the fourth quarter fiscal 2013 earnings release,
management had earlier provided guidance for the first quarter of
fiscal 2014. GAAP net sales were expected between $438.7 million
and $456.0 million, while gross margin was expected to be in the
range of 56.0% to 56.5%. GAAP net income was anticipated to be in
the range of $64.2 million to $71.5 million, with earnings per
share of 30 to 34 cents.
A strong demand pull has also forced Microchip's management to
take immediate steps to align its inventory levels to avoid the
risk of losing out on the opportunity. Workers have been asked to
ramp up production, while all employees are directed to work
With better-than-expected bookings and expedite requests in its
business driven by strong demand and robust product designs,
Microchip anticipates to continue its bull run in the coming
quarters. We also remain encouraged by the strong results of the
company and its bullish guidance.
Microchip presently has a Zacks Rank #2 (Buy). Other players in
the industry that are worth mentioning include
RDA Microelectronics, Inc.
ON Semiconductor Corp.
), each carrying Zacks Rank #2 (Buy).