Semiconductor components maker Microchip Technology Inc. (MCHP) late Thursday posted adjusted fiscal second quarter results that met expectations, but its outlook was weaker than analysts had anticipated.
The Chandler, AZ-based company reported a fiscal second quarter net loss of $21.2 million, or -11 cents per share, compared with net income of $79.3 million, or $0.40 per share in the prior year’s second fiscal quarter. Excluding special items, adjusted profit was 48 cents per share.
Revenue rose 12.5% from last year to $383.3 million, or $407.8 million on an adjusted basis.
On average, Wall Street analysts expected a matching profit of 48 cents per share, on similar revenue.
Looking ahead, MCHP forecast fiscal third quarter adjusted earnings of 37 to 41 cents per share. That range would fall well short of analysts’ view of 49 cents.
Microchip Technology shares fell 54 cents, or -1.7%, in premarket trading Friday.
The Bottom Line
Shares of Microchip Technology (MCHP) have a 4.39% dividend yield, based on last night’s closing stock price of $31.91. The stock has technical support in the $28-$30 price area. If the shares can firm up, we see overhead resistance around the $33-$34 price levels.
Microchip Technology Inc. (MCHP) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.4 out of 5 stars.