Analog chipmaker Microchip Technology (NASDAQ:) is set to release its Q1 earnings report after the market closes tomorrow. Despite meeting revenue expectations in the last quarter, with revenues of $1.77 billion, a decrease of 18.6% compared to the previous year, the quarter was still considered weak due to underwhelming revenue guidance for the next quarter and an increase in inventory levels.
Analysts expect Microchip Technology’s revenue to decline by 39.9% year on year to $1.34 billion in the upcoming quarter, reversing the 21.1% increase from the same quarter last year. Adjusted earnings are projected to be $0.57 per share. Although most analysts have maintained their estimates for the company over the last 30 days, it is important to note that Microchip Technology has missed Wall Street’s revenue estimates twice in the past two years.
In comparison to its peers in the analog semiconductors sector, companies like Impinj and ON Semiconductor have already reported their Q1 results, providing some insight into how Microchip Technology might perform this quarter. Impinj’s revenues were down 10.6% year on year but beat analyst expectations by 4.4%, while ON Semiconductor reported a 4.9% revenue decline in line with consensus estimates. Following these results, Impinj saw a 28.8% increase in its share price, while ON Semiconductor was up 3.1%.
Despite cautious market trends, investors in the analog semiconductors segment have been observing relatively flat share prices over the last month, with Microchip Technology seeing a 2.9% increase during this period despite missing Wall Street’s revenue estimates twice in two years and having an average price target of $93