|Bid||92.87 x 4000|
|Ask||96.59 x 800|
|Day's Range||94.14 - 95.36|
|52 Week Range||65.67 - 101.57|
|Beta (3Y Monthly)||1.43|
|PE Ratio (TTM)||61.83|
|Earnings Date||Feb 3, 2020 - Feb 7, 2020|
|Forward Dividend & Yield||1.47 (1.57%)|
|1y Target Est||108.15|
Are you looking for a tip on the next hot investment? Goldman Sachs has an interesting idea… Move toward US companies with high exposure to international sales. Goldman points out that such companies are on an upswing in 2H19, and that a basket of such stocks has been outperforming both the firm’s other portfolios and the broader S&P 500. For comparison, the firm notes that its ‘international sales exposure’ basket is up 29% this year, compared to the S&P gain of 23%.Stephanie Cohen, Goldman Sachs’ chief strategy officer, in an interview last week talked down fears that the US-China trade tensions are unwinding long-established economic cooperation between the two countries. She said, after a visit to Chinese tech companies in Shenzen, “It’s not that we’re decoupling. If you sit on the ground and you’re talking to companies, people are continuing to talk about ways that they can do business together.”Goldman Sachs has a decades-long record pursuing investment and business openings in China. The firm has partnerships with Chinese banks, and has taken the time to learn the facts on the ground. And now they see opportunity in the US companies that are most exposed to the international scene, where China is working hard to throw its weight around.Looking into Goldman’s basket of stocks with international exposure, we’ve chosen three that TipRanks’ database reveals have shown recent strong gains, a healthy upside potential, and recent Buy ratings from 5-star analysts.KLA Corporation (KLAC)This company services the semiconductor chip industry, providing essential process control and management systems for manufacturers of silicon wafers and integrated circuits, along with quality control and precision metrology. As the industry shifts to new, higher performance chips, and to 5G networks, the need to maintain quality tolerances becomes more important, and KLA, with operations across the US, Europe, and the Asia/Pacific regions is well-positioned to benefit. KLA shares have brought in a disproportionate 97% year-to-date return to the Goldman’s international exposure basket.Looking at the numbers, KLA’s revenue growth over the last few years confirms the company’s importance to the industry. It brought in $2.98 billion in 2016, and has seen that number grow to $4.6 billion in fiscal 2019. In its fiscal Q1 2020 report, the company showed that revenue is still growing, with quarterly sales gaining 12% year-over-year to $1.41 billion.KLA has been active in the past several years making relevant acquisitions. The most recent, metrology tool-maker Capres A/S, was purchased in March of this year for an undisclosed amount. Last year, in a deal worth $3.4 billion, KLA acquired Orbotech, a major producer of circuit boards and flat-panel displays. The deal was completed in February of this year, after clearing regulatory hurdles in China.Writing from JPMorgan, top analyst Harlan Sur sees KLAC shares in a boom period. He writes, “We believe semiconductor capital spending is in the midst of a technology-driven cycle for 7nm/5nm Foundry/Logic, sub-20nm DRAM, and high layer count 3D NAND. As device manufacturing complexities increase, the need to analyze defects and metrology issues at critical points in the IC manufacturing processes increases significantly… [KLA] has diversified end-market exposure through the acquisition of Orbotech." Sur gives KLAC a $200 price target, implying an upside of 13%. (To watch Sur's track record, click here)KLA stock has a resounding “yes” on Wall Street. TipRanks analytics show that out of 12 analysts, 10 are bullish, while 2 remain sidelined. The average price target of $191 shows a potential upside of about 8%. (See KLA stock analysis on TipRanks)Microchip Technology (MCHP)With a market cap of $22.3 billion, Microchip is the sixth largest semiconductor manufacturer in the US. The company produces chips for the microcontroller and microprocessor industry, power management applications, memory solutions, and wireless connection devices. In the 2019 fiscal year, ending this past March, Microchip brought in $5.35 billion in total revenues. Last year, the company acquired competitor Microsemi in a deal with $10 billion.The US-China trade war has hurt Microchip, depressing sales through much of this year. Until this past September, the stock showed high volatility. Even with that, the MCHP is up 30% year-to-date, a solid performance based on the quality and necessity of its products. The company’s first and second quarter fiscal 2020 reports have also helped to allay investor fears. Microchip earnings beat or met expectations in both quarters, while revenues were up year-over-year.Even with the two good quarters, Microchip’s sales are down year-over-year, and the company has revised its full-year guidance downward. In a way, this may be a case of lowering expectations to set up a positive financial report – BMO's top analyst Ambrish Srivastava points out.“Unlike the better guidance/commentary we got for December from companies last week, Microchip's guidance is for lower revenues than expectations, and calling for yet another double-digit y-y decline in sales,” Srivastava noted. In his bottom line, however, Srivastava says, “We like Microchip's operating model. We like the valuation, we like the two rounds of estimate cuts we have already seen. We see the company as among the higher rungs of diversified businesses we would like to recommend in our coverage.” His $110 price target implies a 16% upside for the stock. (To watch Srivastava's track record, click here)Hans Mosesmann, 5-star analyst from Rosenblatt Securities, also sees management’s performance as key to MCHP’s share price prospects. He writes, “MCHP's environment remains uncertain, as the trade war and broad-based macroeconomic weakness hinder visibility. Management continues to execute well, however, and has managed the down-cycle with low channel inventory going forward... We continue to believe mid-to-longer term investors will have increasing confidence in management's ability to execute, as the company looks to exit this down-cycle gaining market share in secular MCU/analog markets and increase operating margins.” Mosesmann puts a $115 price target on the stock, for a 22% upside potential. (To watch Mosesmann's track record, click here)Wall Street’s analysts are sanguine about this stock’s ability to gain going forward. Microchip’s Strong Buy consensus rating is based on 12 Buys and 2 Holds. It doesn’t hurt that its $109.31 average price target puts the potential twelve-month rise at 16%. (See Microchip stock analysis on TipRanks) Alphabet (GOOGL)And now we move away from the semiconductor sector and into the internet. We all know Alphabet; the parent company of Google, with a market cap of $893 billion, is the world’s fourth-largest publicly traded company. With over $136 billion in annual revenue, and $30 billion in net income, there is no doubt that Alphabet will hold its position near the top.GOOGL shares are up 24% year-to-date, just slightly outperforming the S&P 500, after an earnings miss in the Q3 report. While revenues were up, at $40.5 billion, the EPS of $10.12 missed the forecast by 18.5%. The earnings slip came as the company increased capital expenditures from $5.28 billion one year ago to $6.73 billion in the current report. The company is increasing spending on its cloud sales force, and has just made a $2.1 billion offer to acquire smartwatch company Fitbit. The acquisition, if approved, will put Google in a direct position to compete against Apple in the smartwatch and wearable niche.Fitbit will make an interesting addition to Alphabet’s ‘other revenue’ category, which includes both cloud systems and hardware. This category saw quarterly revenue of $6.43 billion, beating the forecast of $6.32 and coming in 38.5% above the year-ago quarter.So GOOGL has a firm foundation in its core search engine business, strong ad revenue, and rising revenues in its other endeavors. It’s a solid picture, and explains why the stock makes up 2.26% of Goldman’s ‘international exposure’ basket. Google’s global reach and profitability are undisputed.5-star JMP analyst Ronald Josey is enthusiastic about the Fitbit acquisition, putting a $1,450 price target on GOOGL and writing, “We believe Fitbit is a natural fit with Google’s current hardware brands that include its Pixel phones, Nest connected home products, and Google home smart speakers under its Made By Google brand, along with its Android OS… we believe Google is investing in developing the hardware and touchpoints that will enable its ambient computing strategy…” Josey’s price target suggests an upside for 12% for GOOGL shares. (To watch Josey's track record, click here)5-star analyst Stephen Ju, of Credit Suisse, focused more on Alphabet’s free cash flow position in his comments, saying, “Google in our view is a controlled outcome, with management looking to drive consistent revenue and FCF growth through the amassing and creation of a portfolio of assets even as the law of large numbers begin to result in deceleration for some of the largest businesses… overall revenue growth has once again settled into a managed ~20%+ range… Google has resumed free cash flow growth this year after two years of investments.” Ju puts a $1,700 price target on the stock, showing confidence in a bullish 31% upside. (To watch Ju's track record, click here)GOOGL’s Strong Buy consensus rating is based on 25 Buys set in the past three months, against just 4 Holds. Analysts are confident that the company can meet the challenges inherent in the ever-changing digital world. Shares sell for an eye-popping $1,296, but the average price target, $1,455, truly gets into nosebleed territory. The stock has an average upside of 12%. (See Alphabet stock analysis on TipRanks)
Microchip and AMI interoperability simplify development of out-of-band remote storage management solutions that reduce data center operational costs CHANDLER, Ariz. , Nov. 13, 2019 /PRNewswire/ -- Data ...
Microchip's (MCHP) Q2 results rides on expanding product portfolio, robust demand for microcontrollers and collaboration with Amazon Web services.
Dow Jones futures signal another stock market rally pause. Xerox is mulling an HP takeover. Match Group is plunging on guidance. Roku, Carvna earnings are due.
Cramer seems to be very bullish on Nvidia stock. Notably, the stock looks solid. The company is set to report its third-quarter earnings on November 14.
Tech stocks Match Group (MTCH) and Microchip (MCHP) are trading lower in the after-hours session today after releasing their earnings results.
Microchip Tech (MCHP) delivered earnings and revenue surprises of 0.00% and -0.98%, respectively, for the quarter ended September 2019. Do the numbers hold clues to what lies ahead for the stock?
Microchip Technology matched Wall Street's target for earnings in its fiscal second quarter, but sales were lighter than forecast. The Microchip earnings news pushed MCHP stock lower.
Microchip Technology Inc. shares dropped more than 5% in after-hours trading Tuesday after the company revealed that earnings and sales declined from last year. Microchip reported fiscal second-quarter profit of $108.9 million, or 43 cents a share, on sales of $1.34 billion, down from $1.43 billion a year ago. After adjusting for share-based compensation and other effects, Microchip reported earnings of $1.43 a share, down from $1.58 a share a year ago. Analysts on average expected adjusted earnings of $1.44 a share on sales of $1.35 billion, according to FactSet. "Our September quarter financial results were reasonably good despite a challenging economic environment," Chief Executive Steve Sanghi said in the announcement. The company projected fiscal third-quarter adjusted earnings of $1.12 to $1.32 a share on sales of $1.2 billion to $1.31 billion, while analysts on average were expecting adjusted earnings of $1.45 a share on sales of $1.35 billion, according to FactSet. Microchip shares had gained 39% so far this year, as the S&P 500 index increased 22.8%.
CHANDLER, Ariz., Nov. 05, 2019 (GLOBE NEWSWIRE) -- (MCHP) – Microchip Technology Incorporated, a leading provider of smart, connected and secure embedded control solutions, today announced that its Board of Directors has declared a quarterly cash dividend on its common stock of 36.65 cents per share. The dividend is payable on December 5, 2019 to stockholders of record on November 21, 2019. Microchip initiated quarterly cash dividend payments in the third quarter of fiscal year 2003 and has increased its dividend 61 times since its inception.
Net sales of $1.338 billion, up 1.1% sequentially and down 6.6% from the year ago quarter. The midpoint of our guidance initially provided on August 6, 2019 was net sales of.
Are you ready for another round of earnings reports? We’re looking at three Strong Buy stocks which are reporting on Tuesday, and investors should be excited. The Q3 earnings season has been better than was anticipated, with 60% of S&P listed companies beating forecasts on revenues, and 74% beating on EPS. It’s a good end to a rough summer in the markets.We found these top stocks through TipRanks’ Stock Screener tool, by setting the filters to sort for ‘strong buy’ ratings, any upside, and dividend payouts. The results are stocks that investors can expect to show solid returns in the coming months.Diamondback Energy (FANG)Based in Texas, Diamondback Energy engages in ‘hydrocarbon exploration,’ or to put it layman’s terms, oil drilling. Diamondback operates in the Permian Basin, of the richest oil regions in Texas and a driver of the fracking boom in the oil and gas industry that has bumped the US to the 1 spot as the world’s largest oil producer. The company is a mid-size player in the industry, with a market-cap of $14 billion, annual revenues exceeding $2.18 billion, and net profits in the range of $940 million – based on a daily production greater than 130,000 barrels of oil equivalent.A product that the modern world cannot do without, along with smart management, has kept FANG profitable despite a 6% drop in share value this year. The company makes up for the lack of share appreciation with a modest dividend of 0.8% yield, or roughly half the sector average. The quarterly payout is 4.75 cents per share.Looking ahead, the markets expect to see FANG report an earnings increase year-over-year, along with higher quarterly revenues Diamondback’s EPS has been rising steadily since Q1 of this year, although the company did miss the forecast last quarter by 2%. In the last eight quarters, Diamondback has beaten the earnings forecasts five times.Putting this into raw numbers, analysts expect FANG to show $1.73 in the Q3 report, based on $1.05 billion in revenues. This represents an earnings beat of 3.6%, and a revenue beat of an impressive 95.3%.Speaking of analysts, Roth Capital’s John White sees reason for optimism in FANG’s low debt load. As he points out, the company operates with low leverage, allowing it to focus on drilling activities and production. White writes, “Our rationale is that FANG does not receive proper credit for its lower leverage… In our view FANG is one of the premier Permian focused companies as it has displayed through its strong record of successful drilling and completion results over a multi-year period and capital return initiatives.”White rates FANG a Buy along with $147 price target, which implies an upside potential of about 60% for the stock. (To watch White's track record, click here)Michael Glick, of JPMorgan, is also bullish on this oil producer. He points out the company’s expanding oil drilling activity, high free cash flow, and acquisitions of new drilling exploration areas. In a report dated October 9, Glick writes, “Diamondback is uniquely positioned in that it should have the highest growth rate among peers while delivering industry leading returns. We model the company growing oil ~16% in 2020Ey/y at a ~5.9% post-dividend FCF yield, and free cash flow continues to expand, particularly in the out-years. Late 2018 acquisitions doubled the size of the company…” Like White, Glick sets a high price target on this stock: $139, suggesting an upside of 60%.All in all, FANG’s Strong Buy consensus rating is unanimous – 15 analysts have given this stock an up-check. The average price target is $138, which indicates a 53% upside from the share price of $86. (See Diamondback stock analysis on TipRanks)Microchip Technologies (MCHP)Even at $5.35 billion in annual revenues, Microchip is considered a second-tier player in the semiconductor chip industry. The top-ten companies all exceed $12 billion annual revenues; add in the next five, and annual revenues are still above $8 billion. But just because it’s smaller than the competition doesn’t mean MCHP isn’t high-end; the company is a leader in its segment, producing microcontrollers, mixed-signal, and Flash-IP integrated circuits, among other products. Based in Arizona, the Microchip has three wafer fabrication facilities in the Western US, and assembly/test facilities in Thailand and the Philippines.The company will report earnings for Q2 fiscal 2020 tomorrow. Microchip is still feeling the effects of the 2H18 slowdown, and analysts expect that the company’s results will show significant declines from one year ago. Conventional wisdom says the company will report $1.43 EPS based on quarterly revenues of $1.35 billion. This is a 21% earnings decline and a 10% revenue drop. On the positive side, just meeting the expectation will mean a 14% EPS sequential gain – and MCHP has a history of beating the earnings forecasts, having done so in 7 of the last 8 quarters.So, Microchip is well positioned in its industry, occupying a solid position in a clear niche. This, plus the company’s proven track record of product success has B. Riley’s 5-star analyst Craig Ellis reiterating his Buy rating along with a $120 price target. (To watch Ellis' track record, click here)The analyst says of the stock, “We expect another quarter of robust execution validate our thesis. We believe the company’s operational excellence will become even more visible when macro pressures subside, or at a minimum when channel inventory reduction pressure eases from acute to a more neutral factor, as we believe is starting to happen.”Wall Street is on the same page. This ‘Strong Buy’ stock received 8 Buy ratings vs 1 Hold over the last three months. Its $108 average price target suggests about 8% upside potential from current levels. (See Microchip stock analysis on TipRanks)Fidelity National Information Services (FIS)The last stock on our list today is FIS, Fidelity National Information Services. This Florida-based company is a major provider of technology and outsourcing to the financial services industry. FIS brings in over $12 billion in annual revenue, and realized more than $825 million annual net income. The company has strongly outperformed the broader markets this year, gaining over 30% in so far in calendar 2019.The fintech sector is a known money-maker, and FIS is widely expected to report a year-over-year gain for Q3. Analysts are forecasting an EPS of $1.35, or 1.5% higher than one year ago. Revenues are also expected to show a yearly gain, of 34%. Market watchers expect the company to report $2.8 billion in revenues for the quarter. Over the last month, analysts have increased their EPS forecast by a modest 0.11%; this is taken a signal that the company is likely to meet expectations.Major research firms – and some 5-star analysts – are showing FIS some love in the lead-up to the earnings release. Writing from Canaccord, Joseph Vafi sets a $150 price target on the stock, writing of the stock’s near- to mid-term prospects, “We think the new FIS, fueled by material cost and revenue synergies… can achieve enough accretion to drive earnings growth towards twenty percent in a couple of years… realistic synergies could drive mid-teens EPS growth in 2021 and 2022; but we believe a more optimistic scenario is achievable, driving EPS growth closer to 20%. Of course, strong cash flow conversion here could also drive additional shareholder initiatives, in boosted buybacks and dividends.” Vafi’s price target suggests an upside of 12.5%. (To watch Vafi's track record, click here)Wolfe Research analyst Darrin Peller is also optimistic about FIS’ profit outlook. He writes, “The company sales/backlog up >30%/7% in 2Q and WP/VNTV’s cross-sell wins now totaling 56 should enable a continuation of its organic growth story.” He added, “…we model organic, constant currency growth of 5.5%. That said, we see our estimate as conservative given 2Q’s pro-forma growth of nearly 6%...” Like Vafi, Peller gives FIS a $150 price target.FIS has built its Strong Buy consensus rating on solid performance which has attracted 14 buys in the last three months, as opposed to only 4 holds. This stock is selling for $133, so the $152 average price target implies an upside of 16%. (See FIS stock analysis on TipRanks)
Microchip (MCHP) second-quarter earnings are likely to reflect solid demand witnessed by latest microcontrollers amid trade war woes and Huawei ban.
Announcement of Periodic Review: Moody's announces completion of a periodic review of ratings of Microchip Technology Inc. New York, October 30, 2019 -- Moody's Investors Service ("Moody's") has completed a periodic review of the ratings of Microchip Technology Inc. and other ratings that are associated with the same analytical unit. The review was conducted through a portfolio review in which Moody's reassessed the appropriateness of the ratings in the context of the relevant principal methodology(ies), recent developments, and a comparison of the financial and operating profile to similarly rated peers.
Microchip Tech (MCHP) doesn't possess the right combination of the two key ingredients for a likely earnings beat in its upcoming report. Get prepared with the key expectations.
In 1991 Steve Sanghi was appointed CEO of Microchip Technology Incorporated (NASDAQ:MCHP). This report will, first...
On CNBC's "Mad Money Lightning Round," Jim Cramer said he would make a switch from Microchip Technology Inc. (NASDAQ: MCHP ) to NVIDIA Corporation (NASDAQ: NVDA ). Investors who think NVIDIA ...
Company's Power over Ethernet (PoE) offering enables both pre-standard and IEEE® 802.3bt-2018-compliant devices to be powered within existing Ethernet infrastructure BANGKOK , Oct. 28, 2019 /PRNewswire/ ...
(Bloomberg) -- Semiconductor stocks in the U.S. tumbled after Texas Instruments raised alarms with a fourth-quarter revenue forecast that trailed the lowest estimate on Wall Street. Lynx Equity, including analysts KC Rajkumar and Jahanara Nissar, warned clients that the Dallas company’s miss was “not an auspicious start to the earnings seasons for semis.”Intel Corp., Xilinx Inc., Microchip Technology Inc., Analog Devices Inc. and Nvidia Corp. were among chipmakers that fell more than 2% in after-hours trading. Texas Instruments plunged as much as 11%.Texas Instruments is the first U.S. semiconductor maker to report earnings for the most recent quarter, at a time when chip stocks have surged on optimism that the U.S.-China trade war will reach a settlement and demand will improve. The Philadelphia Semiconductor Index has gained 39% in 2019.What will resonate with investors the most, says Lynx Equity, is the revelation that “most markets weakened further,” according to Texas Instruments chief executive officer Rich Templeton in a statement. Lynx expects “the broad-based semi sector to trade down in sympathy tomorrow.”While expectations for Texas Instruments were relatively subdued, its earnings results are closely watched by investors because of its broad customer base and geographic reach.(Adds Lynx Equity comments throughout)To contact the reporters on this story: Jeran Wittenstein in San Francisco at firstname.lastname@example.org;Kamaron Leach in New York at email@example.comTo contact the editors responsible for this story: Catherine Larkin at firstname.lastname@example.org, Scott SchnipperFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
Industry's lowest-power FPGA enables high-throughput on-orbit processing systems that withstand radiation effects in space CHANDLER, Ariz. , Oct. 22, 2019 /PRNewswire/ -- Developers of spacecraft electronics ...
Investors' focus has locked in on semiconductor stocks following news of a potential "phase one" trade deal between the U.S. and China. Many chipmakers do production work in China and/or distribute products to Chinese companies, so the industry has suffered a nasty case of whiplash throughout the two or so years of the two countries' tariff spat.The upside is that the volatility still is coming out on their side. The iShares PHLX Semiconductor ETF (SOXX) has soared nearly 40% year-to-date, doubling the already better-than-average returns for the S&P; 500\. While trade enthusiasm has helped, the industry also is recovering from inflated inventory levels that have weighed heavily on the space.SunTrust Robinson Humphrey analyst William Stein wrote in October, "Looking through any tactical correction (due to tariffs), the big move is still to the upside. We believe patient investors will be rewarded for being long semis." And Goldman Sachs' Toshiya Hari wrote in July that chipmaking equipment companies' fundamentals could improve "sooner than previously expected."Here are five semiconductor stocks to buy to take advantage of an improving outlook for the industry. We took advantage of TipRanks' Stock Screener tool to pinpoint five chip stocks that have recently accumulated bullish sentiment from Wall Street analysts. Let's take a look. SEE ALSO: 12 Tech Stocks That Wall Street Loves the Most