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For the quarter, Microchip expects net sales to be $2.023-$2.101 billion, indicating 5% sequential growth. At the midpoint of this guidance, net sales are expected to grow 25% year over year.
Non-GAAP earnings are anticipated to be $1.44 per share, indicating 34.6% year-over-year growth.
The Zacks Consensus Estimate for fiscal second-quarter earnings is pegged at $1.44 per share, unchanged over the past 30 days and indicating growth of 34.58% from the figure reported in the year-ago quarter.
The consensus estimate for revenues is pegged at $2.06 billion, suggesting an improvement of 25.01% 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 3.44%, 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 second quarter.
Microcontrollers represented 54.1% of the company’s fiscal first-quarter 2023 revenues.
Improving demand across office equipment and communication infrastructures, courtesy of the requirement for cloud-computing solutions, bodes well.
However, supply-chain constraints, as well as lockdowns in China, 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 the 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 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 Q2 Earnings: What's in the Cards?
Microchip Technology (MCHP - Free Report) is set to release its second-quarter fiscal 2023 results on Nov 3.
For the quarter, Microchip expects net sales to be $2.023-$2.101 billion, indicating 5% sequential growth. At the midpoint of this guidance, net sales are expected to grow 25% year over year.
Non-GAAP earnings are anticipated to be $1.44 per share, indicating 34.6% year-over-year growth.
The Zacks Consensus Estimate for fiscal second-quarter earnings is pegged at $1.44 per share, unchanged over the past 30 days and indicating growth of 34.58% from the figure reported in the year-ago quarter.
The consensus estimate for revenues is pegged at $2.06 billion, suggesting an improvement of 25.01% 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 3.44%, 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 second quarter.
Microcontrollers represented 54.1% of the company’s fiscal first-quarter 2023 revenues.
Improving demand across office equipment and communication infrastructures, courtesy of the requirement for cloud-computing solutions, bodes well.
However, supply-chain constraints, as well as lockdowns in China, 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 the 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 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:
Airbnb (ABNB - Free Report) has an Earnings ESP of +0.81% and sports a Zacks Rank #1 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Airbnb shares are down 35.8% year to date. ABNB is set to report its third-quarter 2022 results on Nov 1.
ZoomInfo (ZI - Free Report) has an Earnings ESP of +1.27% and a Zacks Rank #2.
ZoomInfo shares have declined 30.6% on a year-to-date basis. ZI is set to report its third-quarter 2022 results on Nov 1.
Fortinet (FTNT - Free Report) has an Earnings ESP of +2.44% and a Zacks Rank #2.
Fortinet shares are down 20.4% year to date. FTNT is set to report its third-quarter 2022 results on Nov 2.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.