Microchip Tech (MCHP) Q3 Earnings: Taking a Look at Key Metrics Versus Estimates
For the quarter ended December 2023, Microchip Technology (MCHP) reported revenue of $1.77 billion, down 18.6% over the same period last year. EPS came in at $1.08, compared to $1.56 in the year-ago quarter.
The reported revenue compares to the Zacks Consensus Estimate of $1.79 billion, representing a surprise of -1.41%. The company delivered an EPS surprise of +1.89%, with the consensus EPS estimate being $1.06.
While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health.
Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.
Here is how Microchip Tech performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
- Net Sales- Mixed-signal Microcontrollers: $995.20 million versus the five-analyst average estimate of $994.82 million. The reported number represents a year-over-year change of -18.5%.
- Net Sales- Other: $339.90 million versus the five-analyst average estimate of $284.35 million. The reported number represents a year-over-year change of -0.4%.
- Net Sales- Analog: $430.60 million compared to the $499.55 million average estimate based on five analysts. The reported number represents a change of -29% year over year.
Shares of Microchip Tech have returned +0.7% over the past month versus the Zacks S&P 500 composite's +1.6% change. The stock currently has a Zacks Rank #5 (Strong Sell), indicating that it could underperform the broader market in the near term.
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