Microchip Technology Prepares to Report Weak Q4 Results Despite Meeting Revenue Expectations: Analysts Predict 39.9% Decline in Next Quarter’s Revenue

After the market closes tomorrow, Microchip Technology (NASDAQ:) is set to report its results for the last quarter. Despite meeting revenue expectations by reporting revenues of $1.77 billion, a decrease of 18.6% compared to the previous year, the quarter was considered weak due to underwhelming revenue guidance for the next quarter and an increase in inventory levels.

In comparison to its peers in the analog semiconductors sector, companies like Impinj and ON Semiconductor have already reported their Q1 results, providing some insight. While Impinj’s revenues were down 10.6% year on year but beat analyst expectations by 4.4%, ON Semiconductor reported a 4.9% revenue decline in line with consensus estimates. Following these results, Impinj saw a 28.8% increase in its share price, while ON Semiconductor was up 3.1%.

Despite cautious market trends, Microchip Technology has seen a 2.9% increase in its share price during the same period, and analysts have an average price target of $93.7 for the company (compared to the current share price of $91.7). However, analysts are expecting Microchip Technology’s revenue to decline by 39.9% year on year to $1.34 billion in the upcoming quarter, reversing the 21.1% increase from the same quarter last year