Due to Microchip’s recent acquisition of SST and the complications caused by purchase accounting, Microchip and Thomson/Reuters/First Call are using non-GAAP financial results in order to provide accurate comparative information to prior periods. The consensus EPS estimates reported by Thomson/Reuters/First Call are non-GAAP, consolidated (MCHP and SST) estimates. There is not a GAAP consensus estimate, as the analysts were requested to report estimates on a non-GAAP basis only. This non-GAAP consolidated consensus estimate for Microchip’s Q1FY11 EPS reported by Thomson/Reuters/First Call was $0.51. The actual non-GAAP consolidated EPS for Q1FY11 reported today by Microchip was $0.55. Thus, Microchip beat the EPS consensus estimate by $0.04 this quarter.
Some media outlets have reported Microchip’s GAAP EPS number of $0.47 and have compared it to the non-GAAP analyst consensus estimate of $0.51, resulting in the inaccurate outcome of a $0.04 shortfall in EPS. The GAAP EPS number of $0.47 is correct, but comparing it to a non-GAAP analyst consensus estimate is not a fair comparison (does not compare “apples to apples”).