Microchip Technology (MCHP) came out with quarterly earnings of $1.37 per share, beating the Zacks Consensus Estimate of $1.34 per share. This compares to earnings of $0.99 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of 2.24%. A quarter ago, it was expected that this chipmaker would post earnings of $1.25 per share when it actually produced earnings of $1.35, delivering a surprise of 8%.
Over the last four quarters, the company has surpassed consensus EPS estimates four times.
Microchip Tech , which belongs to the Zacks Semiconductor – Analog and Mixed industry, posted revenues of $1.96 billion for the quarter ended June 2022, surpassing the Zacks Consensus Estimate by 0.36%. This compares to year-ago revenues of $1.57 billion. The company has topped consensus revenue estimates four times over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.
Microchip Tech shares have lost about 20.6% since the beginning of the year versus the S&P 500's decline of -13.6%.
What's Next for Microchip Tech?
While Microchip Tech has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for Microchip Tech: unfavorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #4 (Sell) for the stock. So, the shares are expected to underperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and current fiscal year change in the days ahead. The current consensus EPS estimate is $1.37 on $1.99 billion in revenues for the coming quarter and $5.41 on $7.9 billion in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Semiconductor – Analog and Mixed is currently in the top 40% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
Analog Devices (ADI), another stock in the same industry, has yet to report results for the quarter ended July 2022. The results are expected to be released on August 17.
This semiconductor maker is expected to post quarterly earnings of $2.43 per share in its upcoming report, which represents a year-over-year change of +41.3%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.
Analog Devices' revenues are expected to be $3.06 billion, up 73.9% from the year-ago quarter.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Microchip Technology Incorporated (MCHP) : Free Stock Analysis Report
Analog Devices, Inc. (ADI) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Related Quotes
Shares of many Chinese companies are getting hit hard today, including several of China's electric vehicle (EV) makers. Shares of Nio (NYSE: NIO), XPeng (NYSE: XPEV), and Li Auto (NASDAQ: LI) all plunged by double digits Monday morning. As of 10:53 a.m. ET, Nio shares were down 20.6%, XPeng was lower by 18.8%, and Li Auto had plunged 24.1%.
These passive income-generating stocks offer yields ranging from 11.3% to 18.6% right now, and billionaire money managers keep buying them hand over fist.
In this article, we will look at the 10 most undervalued value stocks to buy now. If you want to explore similar stocks, you can also take a look at 5 Most Undervalued Value Stocks To Buy Now. 2022 has been an unfavorable year for stocks so far due to rampant inflation and high interest […]
A consolidation of power by President Xi alarms investors that have already faced down years of political and regulatory risk from China.
THE MONEYIST Dear Quentin, I am a senior citizen and have suffered major losses to the tune of $100,000 in the recent stock market turmoil. Can I sue my financial adviser? I understand the dynamics of the market as far as its ups and downs, and have ridden them out before.
Plug Power Inc. ( NASDAQ:PLUG ), might not be a large cap stock, but it saw significant share price movement during…
Banks are selectively raising certificate-of-deposit interest rates this year, and many are paying their best rates on brokered CDs, which well-off customers buy through brokerage firms
Alibaba stock has been hit hard by selling in recent months amid increased tension between the U.S. and China.
Chinese stocks fell hard this morning after China's President Xi Jinping secured an unprecedented third term, which will last for the next five years. For many decades now, Chinese presidents have been limited to two terms. Shares of Chinese e-commerce giant Alibaba (NYSE: BABA) traded roughly 18.5% lower at 10:23 a.m. ET today.
Kinder Morgan (NYSE: KMI) is the undisputed leader in natural gas infrastructure. The company owns and operates 70,000 miles of pipelines, giving it the largest natural gas network in North America. It transports 40% of the natural gas consumed in the U.S. each day.
Arete Research Senior Analyst Rocco Strauss joins Yahoo Finance Live to discuss social media stocks, digital advertising, competition with TikTok, and online shopping experiences.
Yahoo Finance Live anchors discuss the earnings expectations for Tech giants like Google, Microsoft, and Meta.
A combination of strong branding and sustainable tailwinds should allow these stocks to perform well in the long run.
The Zacks Consensus Estimate for QuantumScape's (QS) Q3 loss is pegged at 23 cents a share, implying an improvement from a loss of 29 cents incurred in the corresponding quarter of 2021.
Investors have been waiting for 10 years for IBM’s turnaround strategy to show up as actual revenue growth. During that decade, annual revenue dwindled from $100 billion to $54 billion in 2020. It’s understandable that investors have become skeptical of a few good quarters of improving growth. Nevertheless, it’s worth noting that trailing 12-month revenue has now increased for four consecutive quarters.
Reduced prepayments in Q3 are anticipated to have aided Annaly's (NLY) asset yields and net interest income. However, spread widening is expected to have affected the book value.
J&J, Roche, Eli Lilly and AbbVie are part of The Zacks top Analyst Blog.
Investor focus is likely to be on the sales of Merck's (MRK) blockbuster oncology medicine, Keytruda, and COVID-19 antiviral pill, molnupiravir when the company reports Q3 earnings.
Semiconductors are increasing in importance, and this company's machines are growing only more important in making them.
Two trends — the growing size of the EV pie and Tesla’s shrinking share of it — are likely to continue in the fourth quarter.