Morgan Keegan Maintains Outperform Rating On Microchip Technology

According to Morgan Keegan, Microchip Technology MCHP updated their June quarter expectations after the market close and now expects revenues of $374.5 million or down 1.5% q/q and EPS of $0.53-0.55. Morgan Keegan said that the company cited a number of contributing factors to the lower than expected results including: 1) weakness in the Automotive market 2) an inventory correction resulting from order increase late in the March quarter and 3) weakness in the consumer business. “We are lowering our estimate for FY2012 to $2.16 from $2.48 to reflect the company's updated guidance and cautious outlook on the September quarter. We are maintaining our Outperform rating at present time. Reducing PT to $39.” Microchip Technology closed yesterday at $37.48.