MICROCHIP TECHNOLOGY Reports First Quarter FY2024 Earnings Results on June 30 2023
August 8, 2023
🌥️Earnings Overview
On June 30, 2023, MICROCHIP TECHNOLOGY ($NASDAQ:MCHP) announced their financial results for the first quarter of the next fiscal year. The total revenue of USD 2288.6 million was 16.6% higher than the same quarter of the previous year, and the net income of USD 666.4 million represented a 31.4% year-on-year growth.
Share Price
On Thursday, June 30th 2023, MICROCHIP TECHNOLOGY announced their first quarter FY2024 earnings results. The market responded with stock opening at $88.7 and closing at $89.5, representing a decrease of 0.8% from the prior closing price of $90.3. Leading up to the earnings announcement, the company had seen an increase in share price of over 10%. This was likely propelled by positive news regarding the company’s products and services, as well as indications of strong sales in the first quarter.
Despite the modest decline in share price following the announcement of the company’s first quarter results, investors were pleased with the overall performance. All in all, investors and analysts had a positive reaction to MICROCHIP TECHNOLOGY’s first quarter earnings results. The strong financials combined with the dividend increase indicates that the company is on a solid trajectory for the coming year. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Microchip Technology. More…
| Total Revenues | Net Income | Net Margin |
| 8.76k | 2.4k | 27.6% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Microchip Technology. More…
| Operations | Investing | Financing |
| 3.77k | -586.6 | -3.29k |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Microchip Technology. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 16.49k | 9.66k | 12.55 |
Key Ratios Snapshot
Some of the financial key ratios for Microchip Technology are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 18.5% | 65.7% | 37.7% |
| FCF Margin | ROE | ROA |
| 37.6% | 30.9% | 12.5% |
Analysis
GoodWhale recently conducted an analysis of MICROCHIP TECHNOLOGY‘s wellbeing and the results were impressive. Our Star Chart showed that the company is strong in four key areas: asset, dividend, growth, and profitability. As a result, we classified MICROCHIP TECHNOLOGY as a ‘gorilla’, a type of company we conclude that achieved stable and high revenue or earning growth due to its strong competitive advantage. Given the impressive financial health of MICROCHIP TECHNOLOGY, we believe it may be of interest to a variety of investors. Its high health score of 8/10 considering its cashflows and debt, means it is capable to safely ride out any crisis without the risk of bankruptcy. This makes it an appealing option for those who value stability and security in their investments. For those who are more aggressive, MICROCHIP TECHNOLOGY’s impressive growth and profitability may make it an attractive option as well. More…
Peers
Microchip Technology Inc is a publicly traded company that designs, develops, and manufactures semiconductor products for a variety of embedded control applications. The company offers microcontrollers, development tools, analog and interface products, wireless and wired connectivity products, memory products, and digital power products. It serves customers in the automotive, communications, computing, consumer, and industrial markets. The company was founded in 1987 and is headquartered in Chandler, Arizona.
Globetronics Technology Bhd is a Malaysia-based company that provides semiconductor assembly and test services. It offers a range of services, including wafer fabrication, wafer probing, final test, packaging, and others. The company serves customers in the automotive, communications, computing, consumer, and industrial markets.
Wafer Works Corp is a Taiwan-based company that provides wafer foundry services. It offers a range of services, including wafer fabrication, final test, and packaging. The company serves customers in the automotive, communications, computing, consumer, and industrial markets.
Skyworks Solutions Inc is a publicly traded company that designs, develops, and manufactures semiconductor products for a variety of radio frequency (RF) and microwave applications. The company offers a range of products, including amplifiers, attenuators, circulators, detectors, diodes, directional couplers, mixers, modulators, oscillators, phase shifters, power dividers/combiners, receivers, switches, and transmitters. It serves customers in the automotive, communications, computing, consumer, industrial, medical, military, and aerospace markets.
– Globetronics Technology Bhd ($KLSE:7022)
Globetronics Technology Bhd is a Malaysian-based company that designs, manufactures and supplies precision sensors, optical and electronic products. The company has a market cap of 696.22M as of 2022 and a Return on Equity of 11.73%. Globetronics Technology Bhd’s products are used in a variety of industries including automotive, healthcare, consumer electronics and industrial.
– Wafer Works Corp ($TPEX:6182)
Wafer Works Corp is a leading provider of semiconductor wafers with a market cap of 21.1B as of 2022. The company has a return on equity of 16.27%. Wafer Works Corp is a leading provider of semiconductor wafers used in the manufacture of integrated circuits. The company’s wafers are used in a variety of electronic devices, including computers, cell phones, and other electronic devices.
– Skyworks Solutions Inc ($NASDAQ:SWKS)
Skyworks Solutions Inc is a company that manufactures radio frequency and microwave semiconductor products. The company has a market cap of 13.11B as of 2022 and a ROE of 25.56%. The company’s products are used in a wide variety of wireless communication applications, including smartphones, tablets, laptops, and other mobile devices.
Summary
Investors were pleased with MICROCHIP TECHNOLOGY‘s first quarter of FY2024 results, as the company reported total revenue of USD 2288.6 million, a 16.6% increase from the same period last year. Net income was also up significantly at USD 666.4 million, a 31.4% increase year-over-year. The impressive growth in both top and bottom line numbers is a testament to the company’s ability to drive success in its core business operations. This strong performance could indicate a bright future for MICROCHIP TECHNOLOGY and make it an attractive investment opportunity.
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