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.
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