Stock Alert: Microchip Technology Rises 10% On Better Outlook

(RTTNews) - Shares of Microchip Technology Inc. (MCHP) are climbing more than 10 percent or $9.86 in Wednesday's morning trade at $106.70 after the semiconductor company raised its outlook for the first quarter, saying its business was performing better than it expected during its May 7 earnings conference call.

Tuesday, Microchip Technology said it now expects consolidated net sales for the first quarter of $1.247 billion to $1.326 billion, up from its prior view of $1.194 billion to $1.30 billion.

The Chandler, Arizona-based company now forecasts reported earnings for the quarter between $0.25 and $0.39 per share, and adjusted earnings per share between $1.35 and $1.53 per share. This compares with its previous guidance for reported earnings of $0.13 to $0.31 per share and adjusted earnings between $1.25 and $1.45 per share.

On average, analysts polled by Thomson Reuters expect the company to report earnings of $1.35 per share for the quarter on revenues of $1.25 billion. Analysts' estimates typically exclude special items.

The stock has traded in a range of $53.15 to $112.47 in the past 52 weeks.