Microchip (MCHP) Q2 Earnings Surpass Estimates, Rise Y/Y
Zacks Investment Research | Nov 07, 2018 10:54PM ET
Microchip Technology Incorporated (NASDAQ:MCHP) delivered second-quarter fiscal 2019 non-GAAP earnings of $1.81 per share, surpassing the Zacks Consensus Estimate by 7 cents. The figure was near the higher end of management’s guided range of $1.65 to $1.83 per share and surged 28.4% from the year-ago quarter.
The year-over-year upside was driven by higher net sales, which increased 49.5% from the year-ago quarter to $1.513 billion on a non-GAAP basis. Both the Zacks Consensus Estimate for revenues and the mid-point of management’s guided range ($1.474-$1.550 billion) was pegged at $1.512 billion.
Quarter in Detail
In terms of product line, microcontroller business (54.2% of non-GAAP net sales) increased 12.6% sequentially to $820.1 million. Analog net sales came in at $328.5 million (29%) and surged 33.6% sequentially. Synergies from Microsemi buyout aided growth across both the domains.
We believe Microchip is well poised to capitalize on Microsemi’s growth catalysts. Apart from a robust portfolio, the buyout is likely to expand Microchip’s total addressable markets. Strong demand for Microsemi’s solutions in Data Center, Communications, Defense & Aerospace markets is likely to aid Microchip’s long-term growth prospects.
FPGA revenues (6%) came in at $91.3 million. Robust adoption of company’s low power PolarFire solutions was noteworthy.
Licensing segment (2.5%) reported non-GAAP revenues of $37.1 million which increased 40.3% sequentially, primarily owing to a patent license sale and strength in royalty revenues.
Memory business (3%) declined 3.8% sequentially to $47.3 million.
MMO or multi-market and other business unit revenues (5.2%) surged 90.7% from the previous quarter, primarily due to Microsemi contribution.
Geographically, revenues from Americas, Europe and Asia contributed 25.1%, 22.5% and 52.4% of total revenues, respectively.
Microchip Technology Incorporated Revenue (TTM)
Zacks Investment Research
Get The News You Want
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.