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Microchip (MCHP) to Report Q2 Earnings: What's in the Cards?

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  • MCHP

Microchip Technology MCHP is set to release second-quarter fiscal 2022 results on Nov 4.

For the quarter, the company expects revenues between $1.616 billion and $1.679 billion.

For the second quarter, the Zacks Consensus Estimate for earnings is pegged at $1.06 per share, unchanged over the past 30 days and indicating growth of 36% from the figure reported in the year-ago quarter.

The consensus estimate for revenues is pegged at $1.65 billion, suggesting an improvement of 26% from the year-ago quarter’s reported figure.

Microchip’s earnings beat the Zacks Consensus Estimate in the trailing four quarters, delivering an earnings surprise of 5.7%, on average.

Microchip Technology Incorporated Price and EPS Surprise

Microchip Technology Incorporated Price and EPS Surprise
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 Microchip prior to this announcement:

Factors to Consider

Microchip is riding on consistent strength in its analog and microcontroller businesses. The company is expected to have gained from the dominance of its 8, 16 and 32-bit microcontrollers in fiscal second quarter.

The company’s fiscal second-quarter results are likely to reflect gains from demand recovery across its global business environment, particularly in automotive, industrial and consumer end-markets, on easing of lockdowns and relaxation of shelter-in-place guidelines.

Improving demand across office equipment and communication infrastructures, courtesy of requirement for cloud-computing solutions, besides a booming PC market amid the coronavirus crisis-led work-from-home wave, bodes well.

Strong demand for Microchip’s Power over Ethernet (PoE) to USB-C adapter, as well as for META-DX1 suite of Ethernet products, may have driven microcontrollers’ fiscal second-quarter performance.

However, severe supply-chain constraint is expected to have hurt top-line growth in the to-be-reported quarter.

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.

Microchip has an Earnings ESP of +0.02% and carries a Zacks Rank #3 currently. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Other Stocks to Consider

Here are a few other companies you may want to consider, as our model shows that these too have the right combination of elements to post an earnings beat in their upcoming releases:

Applied Materials AMAT has an Earnings ESP of +0.52% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.

Synaptics SYNA has an Earnings ESP of +0.38% and a Zacks Rank #2.

PerkinElmer PKI has an Earnings ESP of +5.20% and a Zacks Rank #2.


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Microchip Technology Incorporated (MCHP) : Free Stock Analysis Report

Applied Materials, Inc. (AMAT) : Free Stock Analysis Report

Synaptics Incorporated (SYNA) : Free Stock Analysis Report

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