Microchip (MCHP) Q2 Earnings: What's In Store This Time?
Zacks Investment Research | Nov 03, 2016 10:36PM ET
Microchip Technology Inc. (NASDAQ:MCHP) is set to release second-quarter fiscal 2017 earnings on Nov 7. In the last quarter, the company reported a negative earnings surprise of 1.47%. We note that the company delivered positive earnings surprises in three of the last four quarters, with an average positive earnings surprise of 5.32%.
Let’s see how things are shaping up for this announcement.
Factors to Consider
Microchip delivered unimpressive results in first-quarter fiscal 2017 wherein both earnings and revenues missed the Zacks Consensus Estimate. Though the company registered top-line growth on a year-over-year basis, the bottom line was flat.
During the last quarter, the company released the industry’s first end-to-end security solution for Internet of Things (IoT) devices that are compatible with Amazon.com, Inc.’s (NASDAQ:AMZN) Amazon Web Services. With the IoT market projected to grow to 1.7 trillion by 2020 (as per a report by IDC), such developments could have a positive impact on the company’s results in the to-be reported quarter.
The company also rolled out its MOST50 networking devices for infotainment appliances and introduced a new development board specifically meant for carrying out designing tasks on both 16-bit and 32-bit microcontrollers.
While these developments augur well for the company, an uncertain macroeconomic environment, foreign currency risk, and competition can adversely affect its earnings in the second quarter.
Earnings Whispers?
Our proven model does not conclusively show that Microchip is likely to beat earnings this quarter. This is because a stock needs to have both a positive Zacks Investment Research
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