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For the quarter, Microchip expects revenues between $1.716 billion and $1.782 billion, indicating 4-8% sequential growth. At mid-point, revenues are expected to grow 29.3% year over year.
Non-GAAP earnings are anticipated in the range of $1.14-$1.20 per share.
The Zacks Consensus Estimate for fiscal third-quarter earnings is pegged at $1.17 per share, unchanged over the past 30 days and indicating growth of 44.4% from the figure reported in the year-ago quarter.
The consensus estimate for revenues is pegged at $1.75 billion, suggesting an improvement of 29.1% from the year-ago quarter’s reported figure.
Microchip Technology Incorporated Price and EPS Surprise
Microchip’s earnings beat the Zacks Consensus Estimate in the trailing four quarters, delivering an earnings surprise of 3.5%, 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.
The company’s fiscal third-quarter results are likely to reflect gains from demand recovery across its global business environment, particularly in automotive, industrial and consumer end-markets.
Improving demand across office equipment and communication infrastructures, courtesy of requirement for cloud-computing solutions, besides a booming PC market amid the coronavirus crisis-led work-from-home wave, bodes well.
However, supply-chain constraints are expected to have hurt top-line growth in the to-be-reported quarter. Rising commodity costs and labor costs are expected to have kept gross margin under pressure.
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 0.00% and carries a Zacks Rank #2 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:
AMD shares have outperformed the Zacks Computer & Technology sector in the past year. AMD returned 31.4% compared with sector’s rise of 5.5%. The company is set to report fourth-quarter 2021 on Feb 2, 2022.
AMETEK (AME - Free Report) has an Earnings ESP of +0.38% and carries a Zacks Rank of 2 at present.
AME returned 19% in the past year. AMETEK is set to report fourth-quarter 2021 results on Feb 3, 2022.
Fastly (FSLY - Free Report) has an Earnings ESP of +5.51% and a Zacks Rank #2.
Fastly shares are down 73.9% in the past year. Fastly is set to report fourth-quarter 2021 results on Feb 16, 2022.
Image: Bigstock
Microchip (MCHP) to Report Q3 Earnings: What's in the Cards?
Microchip Technology (MCHP - Free Report) is set to release third-quarter fiscal 2022 results on Feb 3.
For the quarter, Microchip expects revenues between $1.716 billion and $1.782 billion, indicating 4-8% sequential growth. At mid-point, revenues are expected to grow 29.3% year over year.
Non-GAAP earnings are anticipated in the range of $1.14-$1.20 per share.
The Zacks Consensus Estimate for fiscal third-quarter earnings is pegged at $1.17 per share, unchanged over the past 30 days and indicating growth of 44.4% from the figure reported in the year-ago quarter.
The consensus estimate for revenues is pegged at $1.75 billion, suggesting an improvement of 29.1% 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 the trailing four quarters, delivering an earnings surprise of 3.5%, 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.
The company’s fiscal third-quarter results are likely to reflect gains from demand recovery across its global business environment, particularly in automotive, industrial and consumer end-markets.
Improving demand across office equipment and communication infrastructures, courtesy of requirement for cloud-computing solutions, besides a booming PC market amid the coronavirus crisis-led work-from-home wave, bodes well.
However, supply-chain constraints are expected to have hurt top-line growth in the to-be-reported quarter. Rising commodity costs and labor costs are expected to have kept gross margin under pressure.
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 0.00% and carries a Zacks Rank #2 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:
Advanced Micro Devices (AMD - Free Report) has an Earnings ESP of +3.47% and is Zacks #2 Ranked. You can see the complete list of today’s Zacks #1 Rank stocks here.
AMD shares have outperformed the Zacks Computer & Technology sector in the past year. AMD returned 31.4% compared with sector’s rise of 5.5%. The company is set to report fourth-quarter 2021 on Feb 2, 2022.
AMETEK (AME - Free Report) has an Earnings ESP of +0.38% and carries a Zacks Rank of 2 at present.
AME returned 19% in the past year. AMETEK is set to report fourth-quarter 2021 results on Feb 3, 2022.
Fastly (FSLY - Free Report) has an Earnings ESP of +5.51% and a Zacks Rank #2.
Fastly shares are down 73.9% in the past year. Fastly is set to report fourth-quarter 2021 results on Feb 16, 2022.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.