Microchip Technology MCHP 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-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:
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.
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.
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 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 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 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.
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