Microchip Technology, MCHP, reported earnings for its fourth quarter on Monday. The company posted GAAP earnings of 57 cents per share, meeting estimates. Sales were also in line with expectations at $1.33 billion.
Microchip Technology raised its quarterly cash dividend by 18.0% year-over-year to 45.2 cents per share. 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. Analysts made changes to their price targets following the earnings announcement, with Mizuho raising it to $85 and Needham raising it to $100. Susquehanna raised its price target to $105 while Truist Securities raised it to $96. Each analyst maintained their respective ratings – Neutral, Buy, Positive, and Buy.
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