Microchip Technology MCHP is set to release its first-quarter fiscal 2025 results on Aug 1.
Microchip expects net sales to be $1.22-$1.26 billion for the first quarter of fiscal 2025. Non-GAAP earnings are anticipated between 48 cents per share and 56 cents per share.
The Zacks Consensus Estimate for fiscal first-quarter earnings is currently pegged at 52 cents per share, unchanged over the past 30 days and suggesting a 68.29% year-over-year decline.
The consensus estimate for revenues is pegged at $1.24 billion, suggesting a decline of 45.75% year over year.
Microchip’s earnings beat the Zacks Consensus Estimate in one of the trailing four quarters and were in line in the remaining three, delivering an earnings surprise of 0.47%, on average.
Microchip Technology Incorporated Price and EPS Surprise
Microchip Technology Incorporated price-eps-surprise | Microchip Technology Incorporated Quote
Let’s see how things have shaped up for the company prior to this announcement:
Factors to Note
Microchip has been suffering from a slowdown in business due to sluggish demand that resulted from a high level of inventory with customers. Persistent inflation, high interest rates and weak China market have been detrimental to MCHP’s prospects in the first quarter of fiscal 2025.
Despite these challenges, Microchip’s consistent strength in its analog and mixed-signal microcontroller businesses is expected to have contributed well in the to-be-reported quarter.
Expanding portfolio has been a key catalyst. The launch of the PIC16F13145 family of MCUs, featuring a Configurable Logic Block module to provide customized hardware solutions and reduce reliance on external logic components, is noteworthy.
What Our Model Says
Per the Zacks model, the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here.
Microchip has an Earnings ESP of -2.09% and a Zacks Rank #4 (Sell). You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks to Consider
Here are some companies worth considering, as our model shows that these have the right combination of elements to beat on earnings in their upcoming releases:
DigitalOcean DOCN has an Earnings ESP of +2.19% and a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
DigitalOcean’s shares have declined 12.3% year to date. DOCN is set to report its second-quarter 2024 results on Aug 8.
Apple AAPL has an Earnings ESP of +3.05% and a Zacks Rank #2.
Apple’s shares have returned 13.2% year to date. AAPL is scheduled to release third-quarter fiscal 2024 results on Aug 1.
CACI International CACI has an Earnings ESP of +1.00% and a Zacks Rank #2.
CACI International’s shares have gained 38.6% year to date. CACI is scheduled to release fourth-quarter fiscal 2024 results on Aug 7.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
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