Microchip Technology Shares Fall After Worse-Than-Expected Q3 Report

Microchip Technology Inc. MCHP reported its third-quarter financial results after Thursday's closing bell. Here's a look at the details from the report. 

The Details: Microchip reported quarterly earnings of 20 cents per share, which missed the analyst consensus estimate of 28 cents. Quarterly revenue came in at $1.02 billion which missed the analyst consensus estimate of $1.06 billion and is a decrease from sales of $1.76 billion from the same period last year.

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“Our December quarter performance reflects the need for the decisive steps we are taking to realign our business, as revenue declined to $1.026 billion and inventory levels reached 266 days,” said Steve Sanghi, Microchip’s CEO and president.

“Since returning as CEO in November, we have already initiated several key actions, including restructuring our manufacturing footprint, adjusting our channel strategy and intensifying our customer engagement. Our initial assessment indicates clear areas for operational enhancement, and we are taking a methodical yet urgent approach to evaluating all aspects of our business and implementing necessary changes to strengthen our competitive position,” Sanghi added.

Outlook: Microchip sees fourth-quarter earnings in a range of five cents to 15 cents per share, versus the 28 cent estimate, and revenue in a range of $920 million to $1 billion, versus the $1.06 billion estimate.

MCHP Price Action: According to data from Benzinga Pro, Microchip Technology shares are down 6.80% after hours at $49.50 on Thursday.  

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