5 Stocks in Focus After Releasing Their Financial Results

2. Microchip Technology Incorporated (NASDAQ:MCHP)

Number of Hedge Fund Holders: 48

Microchip Technology Incorporated (NASDAQ:MCHP) delivered solid profit and sales for its fiscal fourth quarter, sending its shares up more than three percent in the pre-market trading session on Tuesday, May 10, 2022.

The microcontroller and analog semiconductors provider reported adjusted earnings of $1.35 per share, well above 93 cents per share in the year-ago period. Revenue came in at $1.844 billion, up 25.7 percent on a year-over-year basis. Analysts were expecting Microchip Technology Incorporated (NASDAQ:MCHP) to post earnings of $1.25 per share on revenue of $1.82 billion.

Among other updates, Microchip Technology Incorporated (NASDAQ:MCHP) announced that it repurchased $259.6 million worth of its common stock during the quarter. Moreover, it announced a quarterly dividend of 27.6 cents per share, up 9.1 percent on sequential basis.

For its fiscal first quarter, Microchip Technology Incorporated (NASDAQ:MCHP) guided for adjusted earnings in the range of $1.32 – $1.36 per share and revenue between $1.92 – $1.99 billion. The outlook is above the consensus of $1.28 per share for earnings and $1.86 billion for revenue.

Praising the results, CEO Ganesh Moorthy said:

“These impressive results are a testament to the resilience of our model and the strength of our team as we continue to navigate through a challenging supply environment. We believe our focus on operational excellence positions us well to achieve our long-term non-GAAP gross margin target of 68%, non-GAAP operating margin target of 45%, and free cash flow target of 38% through industry cycles.”