Microchip Technology, Inc., reported its fourth-quarter earnings on Monday. The company posted GAAP earnings of 57 cents per share, meeting analysts’ expectations. Sales also came in line with estimates at $1.33 billion.
Despite experiencing a major inventory correction in fiscal 2024 that led to a decline in revenue, Microchip Technology achieved a non-GAAP operating margin of 43.9%. Despite the challenges faced by the company, they remained committed to their capital return program and returned $1.89 billion through dividends and share buybacks during fiscal 2024.
Microchip Technology shares rose 2.6% to close at $93.76 on Monday after the earnings announcement was made public. Analysts responded by making changes to their price targets following the news release. Mizuho raised the price target to $85, Needham raised it to $100, Susquehanna raised it to $105, and Truist Securities raised it to $96. Each maintained their respective ratings – Neutral, Buy, Positive, and Buy.
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