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Microchip (MCHP) to Report Q4 Earnings: What's in the Cards?

Microchip Technology MCHP is set to release its fourth-quarter fiscal 2023 results on May 4.

For the quarter, Microchip expects net sales of $2.191-$2.256 billion, indicating 1-4% sequential growth. At the mid-point of the guidance, net sales are expected to grow 20.6% year over year.

Non-GAAP earnings are anticipated between $1.61 per share and $1.63 per share.

The Zacks Consensus Estimate for fiscal fourth-quarter earnings is pegged at $1.62 per share, unchanged over the past 30 days, indicating growth of 20% from the figure reported in the year-ago quarter.

The consensus estimate for revenues is pegged at $2.22 billion, suggesting an improvement of 20.42% from the year-ago quarter’s reported figure.

Microchip Technology Incorporated Price and EPS Surprise

 

Microchip Technology Incorporated Price and EPS Surprise
Microchip Technology Incorporated Price and EPS Surprise

Microchip Technology Incorporated price-eps-surprise | Microchip Technology Incorporated Quote

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Microchip’s earnings beat the Zacks Consensus Estimate in all the trailing four quarters, delivering an earnings surprise of 3.07% on average.

Let’s see how things have shaped up for the company prior to this announcement:

Factors to Consider

Microchip is riding on consistent strength in its analog and microcontroller businesses. It is expected to have gained from the dominance of its 8, 16 and 32-bit microcontrollers in the fiscal third quarter.

Microcontrollers represented 56.3% of the company’s third-quarter fiscal 2023 revenues.

Microchip’s fiscal fourth-quarter results are expected to benefit from strong industrial, automotive, aerospace and defense, data center, and communications infrastructure end markets. Nevertheless, weakness in the consumer end market is expected to have hurt its top-line growth.

Supply-chain constraints are likely to have hurt the company’s top-line growth in the to-be-reported quarter. Raging inflation and higher interest rates are expected to have hurt profitability.

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 #3, 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:

DigitalOcean DOCN has an Earnings ESP of +2.30% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.

DigitalOcean shares have gained 21.5% year to date. DOCN is set to report its first-quarter 2023 results on May 9.

BILL Holdings BILL has an Earnings ESP of +1.89% and a Zacks Rank of 2 at present.

BILL shares have declined 29.7% year to date. BILL is set to report its third-quarter fiscal 2023 results on May 4.

Blink Charging BLNK has an Earnings ESP of +26.67% and a Zacks Rank #2.

Blink shares have declined 38% in the year-to-date period. BLNK is set to report its first-quarter 2023 results on May 9.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

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

Blink Charging Co. (BLNK) : Free Stock Analysis Report

BILL Holdings, Inc. (BILL) : Free Stock Analysis Report

DigitalOcean Holdings, Inc. (DOCN) : Free Stock Analysis Report

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