Microchip Technology Q1 Profit Surges

(RTTNews) - Microchip Technology Incorporated (MCHP) Tuesday reported first-quarter profit of $507.2 million or $0.90 per share, up from $252.8 million or $0.45 per share last year.

Adjusted profit for the first quarter was $767.2 million or $1.37 per share, up from $558.8 million or $0.99 per share last year.

Net sales for the first quarter jumped 25.1% to $1.964 billion from $1.569 billion last year.

Analysts polled by Thomson Reuters estimated earnings of $1.34 per share on revenues of $1.95 billion for the quarter.

"We kicked off our fiscal 2023 on a strong note, delivering record revenue of $1.96 billion which exceeded the mid-point of our guidance range and marked the seventh consecutive quarter of record revenue," said Ganesh Moorthy, President and Chief Executive Officer. "Year-over-year revenue growth of 25.1% was driven by robust demand across all of our product categories, which again outpaced the capacity improvements we implemented during the June quarter."

Looking forward to the second quarter, the company expects earnings of $0.94 to $0.95 per share, adjusted earnings of $1.42 to $1.46 per share, and revenues of $2.023 billion to $2.101 billion. Analysts currently estimate earnings of $1.34 per share on revenues of $1.96 billion.

Microchip declared quarterly cash dividend of 30.1 cents per share, up 9.1% from the cash dividend paid last quarter and up 37.8% from the year ago quarter. The quarterly dividend is payable on September 2, 2022 to stockholders of record on August 19, 2022.