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Portfolio Strength to Drive Microchip's (MCHP) Q4 Earnings
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Microchip Technology Incorporated (MCHP - Free Report) is slated to release fourth-quarter fiscal 2021 results on May 6.
The company anticipates fiscal fourth-quarter net sales in the range of $1.420 billion to $1.487 billion.
Notably, the Zacks Consensus Estimate for fiscal fourth-quarter revenues is currently pegged at $1.45 billion, suggesting an improvement of 9.7% from the year-ago quarter.
Non-GAAP earnings are projected between $1.67 and $1.79 per share.
Microchip Technology Incorporated Price and EPS Surprise
In the past 30 days, the Zacks Consensus Estimate for fiscal fourth-quarter earnings has been steady over the past 30 days at $1.74 per share, indicates growth of 19.2% from the prior-year reported figure.
Factors Likely to Have Influenced Q4 Performance
Microchip’s fiscal fourth-quarter results are likely to reflect gains from demand recovery across global business environment, particularly in automotive, industrial and consumer end-markets on easing of lockdowns and relaxation in shelter-in-place guidelines.
Moreover, incremental adoption of microcontrollers, primarily the latest Bluetooth 5.0 dual-mode audio solutions, may have favored Microchip’s fiscal fourth-quarter performance. Robust demand for 8-bit, 16-bit and 32-bit microcontrollers might have contributed to the to-be-reported quarter’s performance.
Further, improving demand across office equipment and communication infrastructures courtesy of requirement for cloud computing solutions and booming PC market amid the coronavirus crisis-led work-from-home wave also bodes well.
Notably, the company introduced Power over Ethernet (“PoE”) to USB-C adapter to capitalize on this demand during the quarter under review. It further added that the adapter can convert both power and data and can provide up to 60W USB output power through an Ethernet cable, which is supported by PoE infrastructure.
Similarly, incremental adoption of the company’s META-DX1 suite of Ethernet products may have driven microcontrollers’ fiscal fourth-quarter performance.
Besides, solid momentum of Microsemi’s solutions in Data Center, and Communications end-markets might have favored the to-be-reported quarter’s performance. Markedly, Microchip’s fiscal fourth-quarter results are likely to reflect synergies from acquisitions including Microsemi, Micrel and Atmel.
The company is also anticipated to have witnessed strength in medical end market, courtesy of growth in demand for hospital equipment like ventilators, oxygen monitors, respirators, ultrasound machines and other COVID-19 related items. This might have contributed to the fiscal fourth-quarter performance.
Additionally, the incremental adoption of new RT PolarFire FPGA that supports high-performance requirements of complex space applications may have benefited the to-be-reported quarter’s performance.
Also, gains from design wins for Microchip’s latest PolarFire imaging solutions, primarily for 4K high resolutions might get reflected in FPGA’s (or Field Programmable Gate Array) fiscal fourth-quarter revenues.
However, broad-based coronavirus crisis-induced macroeconomic weakness and headwinds pertaining to Huawei ban are likely to have weighed on the to-be-reported quarter’s performance.
Further, increasing expenses on product development amid stiff competition from peers including Cirrus Logic and Silicon Laboratories might have limited margin expansion in the fiscal fourth quarter.
What the Zacks Model Unveils
Our proven model doesn’t conclusively predict an earnings beat for Microchip this time around. 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.
Although Microchip has a Zacks Rank #2, an Earnings ESP of 0.00% makes surprise prediction difficult. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks to Consider
Here are some stocks worth considering as our proven model shows that these have the right combination of elements to beat on earnings this season.
CDW Corporation (CDW - Free Report) has an Earnings ESP of +0.51% and a Zacks Rank of 2 currently.
Synaptics Incorporated (SYNA - Free Report) has an Earnings ESP of +1.60% and a Zacks Rank of 2 at present.
Breakout Biotech Stocks with Triple-Digit Profit Potential
The biotech sector is projected to surge beyond $775 billion by 2024 as scientists develop treatments for thousands of diseases. They’re also finding ways to edit the human genome to literally erase our vulnerability to these diseases.
Zacks has just released Century of Biology: 7 Biotech Stocks to Buy Right Now to help investors profit from 7 stocks poised for outperformance. Our recent biotech recommendations have produced gains of +50%, +83% and +164% in as little as 2 months. The stocks in this report could perform even better.
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Portfolio Strength to Drive Microchip's (MCHP) Q4 Earnings
Microchip Technology Incorporated (MCHP - Free Report) is slated to release fourth-quarter fiscal 2021 results on May 6.
The company anticipates fiscal fourth-quarter net sales in the range of $1.420 billion to $1.487 billion.
Notably, the Zacks Consensus Estimate for fiscal fourth-quarter revenues is currently pegged at $1.45 billion, suggesting an improvement of 9.7% from the year-ago quarter.
Non-GAAP earnings are projected between $1.67 and $1.79 per share.
Microchip Technology Incorporated Price and EPS Surprise
Microchip Technology Incorporated price-eps-surprise | Microchip Technology Incorporated Quote
In the past 30 days, the Zacks Consensus Estimate for fiscal fourth-quarter earnings has been steady over the past 30 days at $1.74 per share, indicates growth of 19.2% from the prior-year reported figure.
Factors Likely to Have Influenced Q4 Performance
Microchip’s fiscal fourth-quarter results are likely to reflect gains from demand recovery across global business environment, particularly in automotive, industrial and consumer end-markets on easing of lockdowns and relaxation in shelter-in-place guidelines.
Moreover, incremental adoption of microcontrollers, primarily the latest Bluetooth 5.0 dual-mode audio solutions, may have favored Microchip’s fiscal fourth-quarter performance. Robust demand for 8-bit, 16-bit and 32-bit microcontrollers might have contributed to the to-be-reported quarter’s performance.
Further, improving demand across office equipment and communication infrastructures courtesy of requirement for cloud computing solutions and booming PC market amid the coronavirus crisis-led work-from-home wave also bodes well.
Notably, the company introduced Power over Ethernet (“PoE”) to USB-C adapter to capitalize on this demand during the quarter under review. It further added that the adapter can convert both power and data and can provide up to 60W USB output power through an Ethernet cable, which is supported by PoE infrastructure.
Similarly, incremental adoption of the company’s META-DX1 suite of Ethernet products may have driven microcontrollers’ fiscal fourth-quarter performance.
Besides, solid momentum of Microsemi’s solutions in Data Center, and Communications end-markets might have favored the to-be-reported quarter’s performance. Markedly, Microchip’s fiscal fourth-quarter results are likely to reflect synergies from acquisitions including Microsemi, Micrel and Atmel.
The company is also anticipated to have witnessed strength in medical end market, courtesy of growth in demand for hospital equipment like ventilators, oxygen monitors, respirators, ultrasound machines and other COVID-19 related items. This might have contributed to the fiscal fourth-quarter performance.
Additionally, the incremental adoption of new RT PolarFire FPGA that supports high-performance requirements of complex space applications may have benefited the to-be-reported quarter’s performance.
Also, gains from design wins for Microchip’s latest PolarFire imaging solutions, primarily for 4K high resolutions might get reflected in FPGA’s (or Field Programmable Gate Array) fiscal fourth-quarter revenues.
However, broad-based coronavirus crisis-induced macroeconomic weakness and headwinds pertaining to Huawei ban are likely to have weighed on the to-be-reported quarter’s performance.
Further, increasing expenses on product development amid stiff competition from peers including Cirrus Logic and Silicon Laboratories might have limited margin expansion in the fiscal fourth quarter.
What the Zacks Model Unveils
Our proven model doesn’t conclusively predict an earnings beat for Microchip this time around. 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.
Although Microchip has a Zacks Rank #2, an Earnings ESP of 0.00% makes surprise prediction difficult. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks to Consider
Here are some stocks worth considering as our proven model shows that these have the right combination of elements to beat on earnings this season.
Vishay Intertechnology, Inc. (VSH - Free Report) has an Earnings ESP of +5.22% and a Zacks Rank #2, at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
CDW Corporation (CDW - Free Report) has an Earnings ESP of +0.51% and a Zacks Rank of 2 currently.
Synaptics Incorporated (SYNA - Free Report) has an Earnings ESP of +1.60% and a Zacks Rank of 2 at present.
Breakout Biotech Stocks with Triple-Digit Profit Potential
The biotech sector is projected to surge beyond $775 billion by 2024 as scientists develop treatments for thousands of diseases. They’re also finding ways to edit the human genome to literally erase our vulnerability to these diseases.
Zacks has just released Century of Biology: 7 Biotech Stocks to Buy Right Now to help investors profit from 7 stocks poised for outperformance. Our recent biotech recommendations have produced gains of +50%, +83% and +164% in as little as 2 months. The stocks in this report could perform even better.
See these 7 breakthrough stocks now>>