Microchip (MCHP) Q1 Earnings Beat Estimates, Revenues Miss
Zacks Investment Research | Aug 06, 2019 09:15PM ET
Microchip Technology Incorporated (NASDAQ:MCHP) delivered first-quarter fiscal 2020 non-GAAP earnings of $1.41 per share, surpassing the Zacks Consensus Estimate by $1.38 per share. Further, the figure was toward the higher end of management’s guided range of $1.26-$1.49 per share. However, the figure declined from $1.61 reported in the year-ago quarter.
Net sales improved 9.1% from the year-ago quarter to $1.323 billion on a non-GAAP basis. However, the figure missed the Zacks Consensus Estimate of $1.332 billion. Notably, the top line was below the mid-point of the management’s guided range of $1.26-$1.40 billion (mid-point $1.33 billion).
Notably, the impact of Huawei shipment limitations acted as the primary tailwind during the reported quarter. Sales from Huawei contributed 1% to 2% of total net sales. Further, negative developments pertaining to trade war between the United States and China added to woes.
Nonetheless, strength in microcontroller business and portfolio expansion across majority of the operating domains bode well.
Microcontrollers, analog and FPGA contributes approximately 90% to total revenues during the quarter. Notably, Microcontroller business was up 1.8% on a sequential basis while FPGA business was up 7% quarter over quarter.
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