Microchip Technology MCHP 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-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:
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.
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.
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 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 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 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.
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