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Microchip (MCHP) Q1 Earnings & Revenues Top Estimates, Up Y/Y
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Microchip Technology (MCHP - Free Report) reported first-quarter fiscal 2022 non-GAAP earnings of $1.98 per share, which beat the Zacks Consensus Estimate by 6.3% and increased 27% on a year-over-year basis.
Net sales of $1.57 billion increased 19.8% year over year and surpassed the Zacks Consensus Estimate by 0.9%.
Quarter in Detail
In terms of product line, microcontroller revenues were $902.5 million, accounting for 57.5% of revenues. Analog net sales of $432.1 million contributed 27.5% of total revenues.
Geographically, revenues from Americas, Europe and Asia contributed 23.8%, 19.7% and 56.5% to net sales, respectively.
Microchip Technology Incorporated Price, Consensus and EPS Surprise
Non-GAAP gross margin expanded 310 basis points (bps) on a year-over-year basis to 64.8%.
Non-GAAP research & development expenses, as a percentage of net sales, declined 10 bps year over year to 13.5%. Non-GAAP selling, general & administrative (SG&A) expenses, as a percentage of net sales, stayed at 9.5%.
Non-GAAP operating expenses, as a percentage of net sales, declined 10 bps year over year to 23%.
Consequently, non-GAAP operating margin expanded 320 bps on a year-over-year basis to 41.7%.
Balance Sheet & Cash Flow
As of Jun 30, 2021, cash and short-term investments totaled $279.7 million compared with $282 million as of Mar 31, 2021.
As of Jun 30, 2021, total debt (long-term plus current portion) amounted to $8.5 billion compared with $8.9 billion as of Mar 31, 2021.
Cash flow from operating activities was $629.9 million compared with $449.2 million reported in the prior quarter. The company paid down $388 million of debt in the fiscal first quarter.
Guidance
Microchip forecasts second-quarter fiscal 2022 net sales of $1.616-$1.679 billion. Non-GAAP earnings are anticipated in the range of $2.05-$2.17 per share.
Non-GAAP gross margin is anticipated to be 64.8-65.2%. Non-GAAP operating margin is anticipated in the range of 41.6-42.4%.
Zacks Rank & Stocks to Consider
Microchip currently carries a Zacks Rank #2 (Buy).
Similarly-ranked stocks in the broader technology sector are CyberArk Software (CYBR - Free Report) and Arrow Electronics (ARW - Free Report) .
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Microchip (MCHP) Q1 Earnings & Revenues Top Estimates, Up Y/Y
Microchip Technology (MCHP - Free Report) reported first-quarter fiscal 2022 non-GAAP earnings of $1.98 per share, which beat the Zacks Consensus Estimate by 6.3% and increased 27% on a year-over-year basis.
Net sales of $1.57 billion increased 19.8% year over year and surpassed the Zacks Consensus Estimate by 0.9%.
Quarter in Detail
In terms of product line, microcontroller revenues were $902.5 million, accounting for 57.5% of revenues. Analog net sales of $432.1 million contributed 27.5% of total revenues.
Geographically, revenues from Americas, Europe and Asia contributed 23.8%, 19.7% and 56.5% to net sales, respectively.
Microchip Technology Incorporated Price, Consensus and EPS Surprise
Microchip Technology Incorporated price-consensus-eps-surprise-chart | Microchip Technology Incorporated Quote
Non-GAAP gross margin expanded 310 basis points (bps) on a year-over-year basis to 64.8%.
Non-GAAP research & development expenses, as a percentage of net sales, declined 10 bps year over year to 13.5%. Non-GAAP selling, general & administrative (SG&A) expenses, as a percentage of net sales, stayed at 9.5%.
Non-GAAP operating expenses, as a percentage of net sales, declined 10 bps year over year to 23%.
Consequently, non-GAAP operating margin expanded 320 bps on a year-over-year basis to 41.7%.
Balance Sheet & Cash Flow
As of Jun 30, 2021, cash and short-term investments totaled $279.7 million compared with $282 million as of Mar 31, 2021.
As of Jun 30, 2021, total debt (long-term plus current portion) amounted to $8.5 billion compared with $8.9 billion as of Mar 31, 2021.
Cash flow from operating activities was $629.9 million compared with $449.2 million reported in the prior quarter. The company paid down $388 million of debt in the fiscal first quarter.
Guidance
Microchip forecasts second-quarter fiscal 2022 net sales of $1.616-$1.679 billion. Non-GAAP earnings are anticipated in the range of $2.05-$2.17 per share.
Non-GAAP gross margin is anticipated to be 64.8-65.2%. Non-GAAP operating margin is anticipated in the range of 41.6-42.4%.
Zacks Rank & Stocks to Consider
Microchip currently carries a Zacks Rank #2 (Buy).
Similarly-ranked stocks in the broader technology sector are CyberArk Software (CYBR - Free Report) and Arrow Electronics (ARW - Free Report) .
A better-ranked stock in the same sector is Avnet (AVT - Free Report) , which sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Arrow, Avnet and CyberArk are set to report their earnings results on Aug 5, 11 and 12, respectively.