Microchip Technology (MCHP.O) forecasted higher-than-expected first-quarter revenue and profit, following an upbeat fourth-quarter performance. The chipmaker reported revenue of $970.5 million for the quarter ending March 31, surpassing analysts’ estimates of $962.8 million, signaling a recovery in chip demand.
Shares rose 8% in after-hours trading. The company is seeing a turnaround after a prolonged industry slump, with inventories stockpiled during the pandemic now being cleared. CEO Steve Sanghi highlighted that manufacturing optimization is nearly complete, and a more substantial inventory reduction is expected in the June quarter.
Microchip Technology is expanding its atomic clock technology and enhancing microprocessors, with a focus on automotive, industrial, and e-mobility markets. The company forecasts Q1 net sales between $1.02 million and $1.07 million, surpassing analysts’ expectations of $987.6 million. Additionally, adjusted per-share profit is projected to range from 18 to 26 cents, above the 16-cent estimate.
Source: Swifteradio.com
