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Microchip Technology Surprises with Strong Fourth Quarter Earnings Report Despite Inventory Correction

BySamantha Jones

May 7, 2024
Analysts Raise Forecasts for Microchip Technology Following Strong Q4 Results – Microchip Technology (NASDAQ:MCHP)

Microchip Technology Incorporated, MCHP, released its fourth quarter earnings report on Monday. The company reported GAAP earnings of 57 cents per share, beating estimates by just 2 cents. 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 following the earnings announcement. Analysts made changes to their price targets, with Mizuho raising the price target to $85, Needham raising it to $100, Susquehanna raising it to $105, and Truist Securities raising it to $96. Each maintained their respective ratings – Neutral, Buy, Positive and Buy respectively.

Market News and Data provided by Benzinga APIs

By Samantha Jones

As a dedicated content writer at newszxcv.com, I bring a passion for storytelling and a keen eye for detail to every piece I create. With a background in journalism and a love for crafting engaging narratives, I strive to deliver informative and captivating content that resonates with our readers. Whether I'm covering breaking news or delving into in-depth features, my goal is to inform, entertain, and inspire through the power of words. Join me on this journey as we explore the ever-evolving world of news together.

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