Microchip Q3 Earnings to Be Posted Later Today

On Tuesday when the market closes, Microchip Technology (MCHP) will be posting its third quarterly earnings report, and we have the information you need to know.

For the last quarter, Microchip Technology’s revenue was down 45% from the previous year to $1.24 billion. That was what analysts expected, but it did not bode well for the company. The company’s stock dropped dramatically around that Q2 earnings report. Should investors expect a similar performance for this quarter?

The expectation is that this stock will decline again as earnings have declined as well. Another 48% drop is what analysts are predicting, which would place the quarterly earnings at $1.15 billion. Last year for this 3rd quarter, the company saw an increase of 8.7%, and we do not expect anything nearly as positive for the report later today.

The company will likely see an adjusted earnings per share of $0.43. These estimates have all been repeatedly discussed over the last month, and most analysts agree that these numbers are very close to what we will see for today’s report.

Over the last two years, Microchip Technology has missed the analyst expectations for revenue four times. We could see that happen again this year, but we still do not expect the revenue to greatly improve.

Should Investors Buy This Stock?

Microchip stock peaked in late May of this year and has never recovered. It has been on a broadly downward trend since then, with a sharp decline in August that led to lower overall levels for the stock. We expect the stock to have some upward movement still this year but it is not likely to be sustained.

Anyone wanting to trade this stock over the short term should watch it closely for signs of bullish behavior. It does not appear to be a good long term investment right now, and it would be dangerous to simply buy it up and then not keep a close eye on it, since it could lose a lot of value over time.

This is the current trajectory for the stock, and for now, the company has not done enough to reverse course. We do not expect the stock to climb high for long throughout the remainder of 2024, and we would recommend avoiding it for now as a low performing stock until something changes with the company.