Microchip Technology MCHP recently introduced an early access version of MPLAB Extensions for Microsoft Visual Studio Code (VS Code) to expand its offerings for embedded designers.
The latest launch enables embedded designers to seamlessly import projects from MPLAB X Integrated Development Environment (IDE) to VS Code while utilizing Microchip’s robust debugging and programming support.
By merging the powerful capabilities of MPLAB X IDE with the versatile and flexible environment of VS Code, Microchip aims to enhance the development experience for new and existing customers.
The early access program marks the first step in Microchip’s broader integration with the VS Code community, promising continuous refinement and new extensions to meet the evolving needs of developers.
Microchip Technology Incorporated Price and Consensus
Microchip Technology Incorporated price-consensus-chart | Microchip Technology Incorporated Quote
Microchip’s Strong Portfolio Aids Prospect
The latest move bodes well with MCHP’s commitment to enhancing accessibility and flexibility for developers using Microchip tools within the VS Code ecosystem.
Microchop’s commitment to strengthening its overall portfolio to boost its customer momentum across various end markets has been a major growth driver. It is gaining strong momentum across industrial, automotive, aerospace and defense, data center and communications infrastructure end markets.
Building on this momentum, Microchip recently introduced an advanced On-Board Charger (OBC) solution for Electric Vehicles, leveraging their dsPIC33C DSC, MCP14C1 isolated SiC gate driver and mSiC MOSFETs to enhance efficiency and reliability.
Moreover, Microchip is also expanding its footprint in the aerospace and defense sectors by enhancing its portfolio of JAN transistors qualified to MIL-STD-750 and MIL-PRF specifications. This expansion underscores MCHP’s commitment to providing robust solutions that ensure reliability in radiation-rich environments critical for aerospace and defense applications.
Despite MCHP’s robust portfolio across various end markets, persistent inflationary pressures and high interest rates have resulted in a weak macro environment.
Microchip also experienced a significant inventory correction, which resulted in a 40.6% year-over-year decline in the top line to $1.33 billion in the fiscal fourth quarter. The distribution channels also reduced their inventory levels, which have negatively impacted the company’s top line.
These factors have hurt MCHP’s performance in the year-to-date period, with shares declining 1.1% against the Zacks Computer & Technology sector’s return of 22.4%.
Microchip expects net sales to be $1.22-$1.26 billion for first-quarter fiscal 2025. Non-GAAP earnings are anticipated between 48 cents per share and 56 cents.
The Zacks Consensus Estimate for revenues is pegged at $1.24 billion, indicating a 45.75% year-over-year decline. The consensus mark for earnings has declined by a penny to 52 cents in the past 30 days.
Zacks Rank & Stocks to Consider
Currently, Microchip carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader technology sector are Arista Networks ANET, Garmin GRMN and Dropbox DBX, each sporting a Zacks Rank #1(Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Arista Networks’ shares have gained 42% in the year-to-date period. The long-term earnings growth rate for ANET is pegged at 16.07%.
Garmin shares have gained 24.8% in the year-to-date period. The long-term earnings growth rate for GRMN is currently projected at 8.04%.
Shares of Dropbox have declined 25.6% in the year-to-date period. The long-term earnings growth rate for DBX is pegged at 11.44%.
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