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For the quarter, Microchip expects net sales in the range of $2.135-$2.177 billion, indicating 3-5% sequential growth. At the mid-point of the guidance, net sales are expected to grow 22.7% year over year.
Non-GAAP earnings are anticipated between $1.54 per share and $1.56 per share.
The Zacks Consensus Estimate for fiscal third-quarter earnings is pegged at $1.55 per share, unchanged over the past 30 days and indicating growth of 29.17% from the figure reported in the year-ago quarter.
The consensus estimate for revenues is pegged at $2.15 billion, suggesting an improvement of 22.33% from the year-ago quarter’s reported figure.
Microchip Technology Incorporated Price and EPS Surprise
Microchip’s earnings beat the Zacks Consensus Estimate in all the trailing four quarters, delivering an earnings surprise of 3.55% on average.
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 the fiscal third quarter.
Microcontrollers represented 57% of the company’s second-quarter fiscal 2023 revenues.
Microchip’s fiscal third-quarter results are expected to benefit from strong industrial, automotive, aerospace and defense, data center, and communications infrastructure end markets. Nevertheless, weakness in the consumer end market is expected to have hurt its top-line growth.
Moreover, supply-chain constraints, as well as COVID-related lockdowns in China, are expected to have hurt the company’s top-line growth in the to-be-reported quarter. Rising inflation and interest rates are expected to have hurt profitability.
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. But that’s not the case here.
Microchip has an Earnings ESP of -0.81% and a Zacks Rank #4 (Sell), currently. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks to Consider
Here are a few companies you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat in their upcoming releases:
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Microchip (MCHP) to Report Q3 Earnings: What's in the Cards?
Microchip Technology (MCHP - Free Report) is set to release its third-quarter fiscal 2023 results on Feb 2.
For the quarter, Microchip expects net sales in the range of $2.135-$2.177 billion, indicating 3-5% sequential growth. At the mid-point of the guidance, net sales are expected to grow 22.7% year over year.
Non-GAAP earnings are anticipated between $1.54 per share and $1.56 per share.
The Zacks Consensus Estimate for fiscal third-quarter earnings is pegged at $1.55 per share, unchanged over the past 30 days and indicating growth of 29.17% from the figure reported in the year-ago quarter.
The consensus estimate for revenues is pegged at $2.15 billion, suggesting an improvement of 22.33% from the year-ago quarter’s reported figure.
Microchip Technology Incorporated Price and EPS Surprise
Microchip Technology Incorporated price-eps-surprise | Microchip Technology Incorporated Quote
Microchip’s earnings beat the Zacks Consensus Estimate in all the trailing four quarters, delivering an earnings surprise of 3.55% on average.
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 the fiscal third quarter.
Microcontrollers represented 57% of the company’s second-quarter fiscal 2023 revenues.
Microchip’s fiscal third-quarter results are expected to benefit from strong industrial, automotive, aerospace and defense, data center, and communications infrastructure end markets. Nevertheless, weakness in the consumer end market is expected to have hurt its top-line growth.
Moreover, supply-chain constraints, as well as COVID-related lockdowns in China, are expected to have hurt the company’s top-line growth in the to-be-reported quarter. Rising inflation and interest rates are expected to have hurt profitability.
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. But that’s not the case here.
Microchip has an Earnings ESP of -0.81% and a Zacks Rank #4 (Sell), currently. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks to Consider
Here are a few companies you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat in their upcoming releases:
Cambium Networks (CMBM - Free Report) has an Earnings ESP of +9.27% and a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
Cambium shares have declined 16.6% in the past year. CMBM is set to report its fourth-quarter 2022 results on Feb 16.
Bruker (BRKR - Free Report) has an Earnings ESP of +3.89% and a Zacks Rank of 2, at present.
Bruker shares have gained 6% in the past year. BRKR is set to report its fourth-quarter 2022 results on Feb 9.
Perion Network (PERI - Free Report) has an Earnings ESP of +13.40% and a Zacks Rank #3.
Perion shares have gained 53.9% in the past year. PERI is set to report its fourth-quarter 2022 results on Feb 8.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.