Microchip Technology, a NASDAQ-listed analog chipmaker, is set to release its latest earnings report after the market closes tomorrow. In the previous quarter, the company met revenue expectations by reporting $1.77 billion, which was a 18.6% decline from the same period last year. However, the quarter was considered weak due to insufficient revenue guidance for the next quarter and an increase in inventory levels.
The company’s upcoming financial report is anticipated to reveal a significant decline in revenue. Analysts predict that Microchip Technology’s revenue will fall 39.9% year-over-year to $1.34 billion in the next quarter, reversing 21.1% growth from the same quarter last year. Additionally, adjusted earnings are forecast to be $0.57 per share. Despite this, most analysts have kept their estimates for the company over the past 30 days, indicating that they remain confident in its ability to recover in the near future.
In comparison to their counterparts in the analog semiconductor sector, companies such as Impinj and ON Semiconductor have already reported their first quarter results, providing some insight into how Microchip Technology might perform in the coming quarters. Impinj’s revenue fell 10.6% year-on-year but beat analysts’ expectations of 4.4%, while ON Semiconductor reported a 4.9% decline in revenue, in line with consensus estimates