Microchip Technology (NASDAQ:MCHP) Issues Q2 2025 Earnings Guidance

Microchip Technology (NASDAQ:MCHP) issued an update on its second quarter 2025 earnings guidance on Thursday morning. The company provided earnings per share (EPS) guidance of 0.400-0.460 for the period, compared to the consensus estimate of 0.590. The company issued revenue guidance of $1.1 billion-$1.2 billion, compared to the consensus revenue estimate of $1.3 billion. Microchip Technology also updated its Q2 guidance to $0.40-0.46 EPS.

Analysts Set New Price Targets

Several equities research analysts recently weighed in on MCHP shares. Citigroup dropped their price objective on shares of Microchip Technology from $104.00 to $92.00 and set a buy rating on the stock in a research note on Friday. Jefferies Financial Group assumed coverage on Microchip Technology in a research report on Monday, May 13th. They set a buy rating and a $115.00 price objective for the company. Piper Sandler reaffirmed a neutral rating and issued a $90.00 target price (up from $80.00) on shares of Microchip Technology in a research report on Tuesday, May 7th. Morgan Stanley cut Microchip Technology from an overweight rating to an equal weight rating and cut their target price for the company from $102.00 to $100.00 in a research note on Thursday, July 11th. Finally, UBS Group upped their price target on shares of Microchip Technology from $95.00 to $103.00 and gave the stock a buy rating in a research report on Tuesday, May 7th. Seven investment analysts have rated the stock with a hold rating and fourteen have given a buy rating to the company. Based on data from MarketBeat, the company currently has an average rating of Moderate Buy and a consensus target price of $99.15.

Microchip Technology Price Performance

Shares of MCHP stock traded down $8.94 during mid-day trading on Friday, hitting $75.43. 17,482,866 shares of the stock traded hands, compared to its average volume of 6,510,382. The company has a debt-to-equity ratio of 0.75, a quick ratio of 0.67 and a current ratio of 1.20. The firm has a market cap of $40.47 billion, a price-to-earnings ratio of 21.74 and a beta of 1.54. The company’s 50-day simple moving average is $91.66 and its 200-day simple moving average is $89.42. Microchip Technology has a twelve month low of $68.75 and a twelve month high of $100.57.

Microchip Technology (NASDAQ:MCHP) last posted its quarterly earnings results on Thursday, August 1st. The semiconductor company reported $0.53 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.52 by $0.01. The firm had revenue of $1.24 billion for the quarter, compared to analyst estimates of $1.24 billion. Microchip Technology had a net margin of 20.80% and a return on equity of 27.82%. The firm’s quarterly revenue was down 45.8% compared to the same quarter last year. During the same quarter in the previous year, the business posted $1.56 earnings per share. As a group, equities research analysts expect that Microchip Technology will post 2.35 earnings per share for the current year.

Microchip Technology Increases Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Thursday, September 5th. Investors of record on Thursday, August 22nd will be given a dividend of $0.454 per share. This represents a $1.82 annualized dividend and a yield of 2.41%. The ex-dividend date of this dividend is Thursday, August 22nd. This is a positive change from Microchip Technology’s previous quarterly dividend of $0.45. Microchip Technology’s dividend payout ratio (DPR) is presently 52.16%.

Insiders Place Their Bets

In related news, Director Matthew W. Chapman sold 2,748 shares of the company’s stock in a transaction on Monday, June 10th. The shares were sold at an average price of $93.88, for a total value of $257,982.24. Following the completion of the sale, the director now directly owns 35,682 shares in the company, valued at $3,349,826.16. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at the SEC website. In other Microchip Technology news, Director Matthew W. Chapman sold 2,748 shares of the company’s stock in a transaction that occurred on Monday, June 10th. The stock was sold at an average price of $93.88, for a total transaction of $257,982.24. Following the completion of the sale, the director now owns 35,682 shares of the company’s stock, valued at $3,349,826.16. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, VP Stephen V. Drehobl sold 10,000 shares of Microchip Technology stock in a transaction that occurred on Wednesday, May 8th. The shares were sold at an average price of $90.88, for a total transaction of $908,800.00. Following the completion of the transaction, the vice president now directly owns 82,203 shares in the company, valued at approximately $7,470,608.64. The disclosure for this sale can be found here. Insiders sold 23,993 shares of company stock valued at $2,251,857 over the last ninety days. Corporate insiders own 2.07% of the company’s stock.

About Microchip Technology

Microchip Technology Incorporated develops, manufactures, and sells smart, connected, and secure embedded control solutions in the Americas, Europe, and Asia. The company offers general purpose 8-bit, 16-bit, and 32-bit microcontrollers; 32-bit embedded mixed-signal microprocessors; and specialized microcontrollers for automotive, industrial, computing, communications, lighting, power supplies, motor control, human machine interface, security, wired connectivity, and wireless connectivity applications.