Microchip Technology Incorporated (MCHP) reported in-line earnings for its fourth quarter on Monday. The company posted GAAP earnings of 57 cents per share, beating estimates by 2%. Sales were also in line with expectations at $1.33 billion. Despite a major inventory correction in fiscal 2024, which led to a 9.5% decline in revenue to $7.6 billion, the company’s resilient operating model and rapid adjustment to the adverse business environment enabled it to achieve a non-GAAP operating margin of 43.9%.
Ganesh Moorthy, President and Chief Executive Officer of Microchip Technology, commented on the company’s performance: “We are proud of our ability to navigate these challenges and deliver strong financial results. We continue to be committed to our capital return program and have returned $1.89 billion through dividends and share buybacks during fiscal 2024.”
Following the earnings announcement, several analysts made changes to their price targets on Microchip Technology. Mizuho raised the price target from $82 to $85 and maintained a Neutral rating. Needham boosted the price target from $90 to $100 and maintained a Buy rating. Susquehanna increased the price target from $100 to $105 with a Positive rating. Truist Securities raised the price target from $93 to $96 and maintained a Buy rating.
Market News and Data were provided by Benzinga APIs