Microchip Technology
MCHP
is set to release
fourth-quarter fiscal 2022
results on May 9.
For the quarter, Microchip expects net sales of $1.793-$1.845 billion, indicating 2-5% sequential growth. At the mid point of this guidance, net sales are expected to grow 24% year over year.
Non-GAAP earnings are anticipated in the range of $1.22-$1.28 per share.
The Zacks Consensus Estimate for fiscal fourth-quarter earnings is pegged at $1.25 per share, unchanged over the past 30 days and indicating growth of 34.41% from the figure reported in the year-ago quarter.
The consensus estimate for revenues is pegged at $1.82 billion, suggesting an improvement of 24.05% from the year-ago quarter’s reported figure.
Microchip Technology Incorporated Price and EPS Surprise
Microchip Technology Incorporated price-eps-surprise
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Microchip Technology Incorporated Quote
Microchip’s earnings beat the Zacks Consensus Estimate in the trailing four quarters, delivering an earnings surprise of 3.51%, on average.
Let’s see how things have shaped up for Microchip prior to this announcement:
Factors to Consider
Microchip is riding on consistent strength in its analog and microcontroller businesses. The company is expected to have gained from the dominance of its 8, 16 and 32-bit microcontrollers in the fiscal fourth quarter.
Improving demand across office equipment and communication infrastructures, courtesy of requirement for cloud-computing solutions, bodes well.
However, supply-chain constraints are expected to have hurt top-line growth in the to-be-reported quarter. Rising commodity costs and labor costs are expected to have kept gross margin under pressure.
What Our Model Says
Per the Zacks model, the combination of a positive
Earnings ESP
and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here.
Microchip has an Earnings ESP of 0.00% and carries a Zacks Rank #4 (Sell) currently. You can uncover the best stocks to buy or sell before they’re reported with our
Earnings ESP Filter
.
Stocks to Consider
Here are a few companies you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat in their upcoming releases:
Analog Devices
ADI
has an Earnings ESP of +2.17% and is Zacks #2 Ranked. You can see
the complete list of today’s Zacks #1 Rank stocks here
.
ADI’s shares have tumbled 10% year to date compared with the Zacks
Computer and Technology
sector’s decline of 23%.
Arlo Technologies
ARLO
has an Earnings ESP of +33.33% and carries a Zacks Rank of 3 at present.
ARLO shares are down 29.6% year to date.
2U
TWOU
has an Earnings ESP of +4.76% and a Zacks Rank #3.
TWOU shares are down 53.4% year to date.
Stay on top of upcoming earnings announcements with the
Zacks Earnings Calendar
.
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