Microchip Technology Incorporated Reports Strong In-Line Earnings for Fourth Quarter, Despite Major Inventory Correction and Dividend Returns

Microchip Technology Incorporated, MCHP, reported strong in-line earnings for its fourth quarter on Monday. The company posted GAAP earnings of 57 cents per share, meeting estimates. Sales were also in line with expectations at $1.33 billion.

Despite facing a major inventory correction in fiscal 2024, which led to a decline in revenue, Microchip Technology was able to achieve a non-GAAP operating margin of 43.9%. They remained committed to their capital return program, returning $1.89 billion through dividends and share buybacks during fiscal 2024.

Microchip Technology shares rose by 2.6% to close at $93.76 on Monday, following the earnings announcement. Analysts made changes to their price targets based on the results. Mizuho raised the price target to $85, Needham raised it to $100, Susquehanna raised it to $105 and Truist Securities raised it to $96. Each analyst maintained their respective ratings – Neutral, Buy, Positive and Buy respectively.

Market News and Data provided by Benzinga APIs. Copyright © 2024 Benzinga.com