Microchip Technology (NASDAQ:) is expected to release its Q2 results after the market closes tomorrow. Despite meeting revenue expectations in the previous quarter with revenues of $1.77 billion, a decrease of 18.6% compared to the same quarter last year, the company faced underwhelming revenue guidance for the next quarter and an increase in inventory levels.
Analysts are projecting that Microchip Technology’s revenue will decline by 39.9% year on year to $1.34 billion in the upcoming quarter, reversing the 21.1% increase from the same quarter last year. Adjusted earnings are projected to be $0.57 per share. While most analysts have kept their estimates for the company over the past 30 days, it is worth noting that Microchip Technology has missed Wall Street’s revenue estimates twice in the past two years.
In comparison to its peers in the analog semiconductors sector, companies like Impinj and ON Semiconductor have already reported their Q1 results, offering some insight into market trends. Impinj’s revenues were down 10.6% year on year but beat analyst expectations by 4.4%, while ON Semiconductor reported a 4.9% revenue decline in line with consensus estimates. Following these results, Impinj saw a 28.8% increase in its share price, while ON Semiconductor was up 3.1%.
Investors in the analog semiconductors segment have been observing cautious market trends over the past month, with share prices remaining relatively flat despite this, Microchip Technology has seen a 2