Finny logo
Finny logo
Dibs:
Dibs:
0

Microchip Technology (MCHP) earnings: expect 33% revenue growth

6:25 am ET, 07 May 2019

Microchip Technology Incorporated (MCHP) is announcing earnings on May 08 after the market closes. Wondering what revenue and earnings will look like?

What should you expect from the upcoming earnings?

Revenue for the next quarter is expected to be $1B, which implies 33% growth rate year-over-year.

Earnings per share are expected to come in at $1.41. If this materializes, EPS will grow 1% year-over-year.

How did the stock do last month?

Over the last month, Microchip Technology Incorporated (MCHP) returned +16.81%.

What do analysts say about the stock?

Microchip Technology Incorporated (MCHP) average analyst price target is 0.93% above its current price ($99.89).

For the latest price and information on Microchip Technology, please visit Finstead and ask for "MCHP", "MCHP analysis" or "MCHP news".

Powered by Froala Editor

Looking for opportunities in the tech sector? Here are 3 stock bets for April

3:10 am ET, 13 Apr 2019

Disclaimer: The following bite is my perspective on tech investing; it is not an endorsement or a recommendation for investors to buy, sell or short any tech stock. 

Technology is again up year-to-date in 2019 and outperformed the global equity market.  There is some optimism that the U.S. and China can reach trade agreements and avoid a full-blown trade war, an issue that caused the markets and the tech sector to fall sharply in Q4'18. 

But now that the market is at the top of the 52-week range, where do you see opportunities for investing in the tech sector?  

Here are our bets.  Please note that this is not a recommendation to buy these stocks--we're just giving you some ideas on  tech stocks to investigate further. 

In the near term, margins will remain under pressure because of aggressive content spending and talent acquisition costs for AI personnel, but we foresee strong revenue growth for the company thereafter.

1.  Baidu (BIDU)

Baidu (BIDU) is our internet pick.  Although weaker economic growth in China is a concern, Baidu is the largest Internet search engine in China and has built an ecosystem around search and shifted to mobile.  Baidu is now evolving from a mobile-first to an artificial-intelligence-first company. 

Over the last month, Baidu (BIDU) returned +8.23%.

Baidu (BIDU) average analyst price target ($212.18) is 22.58% above its current price ($173.09).

For the latest price and stock analysis of Baidu, please visit Finstead and ask for "Baidu" or "BIDU  analysis".

2.  Applied Materials (AMAT)

Applied Materials (AMAT) shares are trading at a discount. The company has benefited greatly from the sharp rise in spending by memory and display chipmakers over the past few years.  

2019 is looking like a slower year for Applied; however,  leveraging the breadth of its product portfolio and services, I believe Applied be able to navigate this softer demand. 

Over the last month, Applied Materials (AMAT) returned +10.56%.

Applied Materials (AMAT) forward P/E ratio is 10.94, and it’s low compared to its industry peers’ P/E ratios.

Applied Materials (AMAT) average analyst price target ($48.41) is 12.61% above its current price ($42.99).

For the latest price and analysis of Applied Materials, visit Finstead and ask for "Applied Materials" or "AMAT analysis".

3.  Microchip Technology (MCHP)

Microchip Technology (MCHP) is one of the highest-quality firms in the semiconductor space. It powers a variety of smart devices and the "Internet of Things" applications.  Microchip products can be found under the hood of the latest cars with the most advanced electronics.  

The company  is poised to profit from rising chip content per vehicle.

Over the last month, Microchip Technology Incorporated (MCHP) returned +6.47%.

Microchip Technology Incorporated (MCHP) average analyst price target ($100.82) is 5.73% above its current price ($95.36).

For the latest price and information on Microchip Technology, please visit Finstead and ask for "Microchip" or "MCHP analysis".

Microchip Technology Incorporated (MCHP) Stock Guide

Updated at: 5:10 am ET, 18 Sep 2020

Before we start: if you're looking for MCHP stock price, you can quickly find it out by visiting Finny and typing "MCHP quote". If you're looking for a quick scoop on MCHP stock (chart, price target, market cap, news and buy or sell analysis), go to Finny and look for "MCHP". You'll get all this info in one place. Or you can just type "MCHP news" to get the latest stock news.

Looking to buy or sell Microchip Technology Incorporated (MCHP)? Interested in getting the full scoop on MCHP, including earnings and dividends, stock forecast, buy or sell analysis and key stats? If so, you came to the right place.

In this MCHP stock guide, we'll address key questions about MCHP, above and beyond what you can find on Yahoo Finance, Zacks, MarketWatch or Morningstar.

Here is what you'll be able to find in this guide:

Earnings and Dividends: earnings, earnings date, dividend rate and dividend yield;
Analyst Predictions: stock forecast and analyst ratings;
Analysis: Finny Score and buy or sell analysis;
Key Stats: revenue, market cap, revenue growth, profit margin, P/E ratio, P/B ratio, industry, sector, and number of employees.

And here is the list of questions we'll answer:
1. What are MCHP earnings?
2. What is MCHP dividend?
3. What is MCHP dividend yield?
4. What is MCHP stock forecast (i.e., prediction)?
5. MCHP buy or sell? What is MCHP Finny Score?
6. What are the reasons to buy MCHP? Why should I buy MCHP stock?
7. What are the reasons to sell MCHP? Why should I sell MCHP stock?
8. What are MCHP key stats: revenue, market cap, revenue growth, profit margin, P/E ratio, P/B ratio industry, sector, and number of employees?

So let's start. Scroll down to the question that interests you the most.

Earnings and Dividends

1. What are MCHP earnings?

MCHP trailing 12-month earnings per share (EPS) is $2.50.

2. What is MCHP dividend?

MCHP forward dividend is $1.47.

3. What is MCHP dividend yield?

MCHP forward dividend yield is 1.34%.

Analyst Predictions

4. What is MCHP stock forecast (i.e., prediction)?

Based on MCHP analyst price targets, MCHP stock forecast is $119.19 (for a year from now). That means the average analyst price target for MCHP stock is $119.19. The prediction is based on 17 analyst estimates.

The low price target for MCHP is $102.00, while the high price target is $130.00.

MCHP analyst rating is Buy.

Analysis

5. MCHP buy or sell? What is MCHP Finny Score?

#{finnyScore:56}Our quantitative analysis shows 5 reasons to buy and 4 reasons to sell MCHP, resulting in Finny Score of 56.

6. What are the reasons to buy MCHP? Why should I buy MCHP stock?

Here are the reasons to buy MCHP stock:

  • Microchip sells to tens of thousands of end customers, so it is not overly dependent on sales to any one client or market segment.
  • Microchip's focus on the MCU market gives it an advantage over larger competitors, in our view, as MCUs are only one of many segments within their larger businesses.
  • Microchip has one of the highest dividend yields in the chip sector.
  • MCHP profitability is improving. The YoY profit margin change was 1.58 percentage points. See MCHP profitability chart.
  • MCHP forward dividend yield is 1.34%, higher than the industry (0.61%) and sector (0.26%) forward dividend yields. See MCHP forward dividend chart.
  • MCHP forward P/E ratio is 16.84, which is low compared to its industry peers’ P/E ratios. See MCHP forward P/E ratio chart.
  • MCHP average analyst rating is Buy. See MCHP analyst rating chart.
  • MCHP average analyst price target ($119.19) is above its current price ($103.52). See MCHP price target chart.

7. What are the reasons to sell MCHP? Why should I sell MCHP stock?

Let's look at the reasons to sell MCHP stock (i.e., the bear case):

  • Microchip faces competition in analog chips and microcontrollers from larger firms, such as Texas Instruments and STMicro.
  • Microchip is the market-share leader in 8-bit MCUs but trails a couple of other firms in 16- and 32-bit MCUs.
  • Microchip has done an exceptional job of integrating M&A targets in recent years, but has leveraged up the balance sheet to do so.
  • MCHP quarterly revenue growth was -1.00%, lower than the industry and sector average revenue growth (0.39% and 0.89%, respectively). See MCHP revenue growth chart.
  • MCHP short share of float is 8.87%. The stock is much more frequently shorted than the average industry, sector or S&P 500 stock. See MCHP short share of float chart.
  • MCHP short interest (days to cover the shorts) ratio is 8.32. The stock garners more short interest than the average industry, sector or S&P 500 stock. See MCHP short interest ratio chart.
  • MCHP cash to debt ratio is 0.04, lower than the average industry (0.33) and sector (0.17) cash to debt ratio. See MCHP cash to debt chart.

Key Stats

8. What are MCHP key stats : revenue, market cap, revenue growth, profit margin, P/E ratio, P/B ratio industry, sector, and number of employees?

Let's look at the key statistics for MCHP:

Metrics MCHP
Price $109.80
Average Price Target / Upside $119.24 / 8.60%
Average Analyst Rating Buy
Forward Dividend Yield 1.32%
Industry Semiconductors
Sector Technology
Number of Employees 14,234
Market Cap $27.96B
Forward P/E Ratio 16.60
Price/Book Ratio 5.31
Revenue (TTM) $5.26B
YoY Quarterly Revenue Growth -1.00%
Profit Margin 12.23%

If you liked this analysis, check out Stock Guides for other stocks.

Follow Us