) is one of the fastest growing providers of 16-bit and 32-bit
microcontrollers. Earnings estimates have gone down significantly
after the company reported its second quarter 2013 results, which
missed the Zacks Consensus Estimate for the second quarter in a
Sales continued to decline due to weak European markets and
uncertain economic environments in the U.S. and China. Margins were
hit by increased acquisition charges. The guidance provided by the
company was also weak. The uncertain economic environment, coupled
with deceleration in worldwide GDP growth, continues to hamper
Therefore, a significant improvement in business is not in the
cards for the near term. Consequently, we have downgraded our
recommendation on the company to Underperform from Neutral.
MICROCHIP TECH (MCHP): Free Stock Analysis
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