Microchip Technology Incorporated, MCHP, reported strong earnings for its fourth quarter on Monday. The company posted GAAP earnings of 57 cents per share, beating estimates by a few cents. Sales were also in line with expectations at $1.33 billion.
Despite experiencing a major inventory correction in fiscal 2024, which led to a decline in revenue, the company was able to achieve a non-GAAP operating margin of 43.9%. They remained committed to their capital return program, returning $1.89 billion through dividends and share buybacks during fiscal 2024.
Microchip Technology shares rose 2.6% to close at $93.76 on Monday. Analysts made changes to their price targets following the earnings announcement. Mizuho raised the price target to $85, Needham raised it to $100, Susquehanna raised it to $105, and Truist Securities raised it to $96. Each maintained their respective ratings – Neutral, Buy, Positive, and Buy.
Microchip Technology’s strong financial performance is attributed to its focus on innovation and technology advancements in the semiconductor industry. The company’s commitment to capital return programs has helped boost its stock prices and maintain investor confidence. With continued growth potential and strong market demand for its products and services, Microchip Technology is well positioned for long-term success in the semiconductor industry.