Microchip Technology Incorporated, MCHP, reported 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 experiencing a major inventory correction in fiscal 2024, which led to a decline in revenue, the company 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 2.6% to close at $93.76 on Monday. Analysts made changes to their price targets following the earnings announcement. 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 maintained their respective ratings – Neutral, Buy, Positive, and Buy.
Microchip Technology announced that it had increased its quarterly cash dividend by 18% year-over-year to 45 cents per share on Monday. Despite experiencing a major inventory correction in fiscal 2024 that led to a decline in revenue