Microchip Technology shares tumble 10% after December‑quarter sales guidance miss and data‑center warning
Microchip Technology reported September sales of $1.622 billion, up 42.2% year over year, and non‑GAAP EPS of $0.97. The company then guided December‑quarter net sales to $1.573 billion‑$1.638 billion, about 1% below the $1.63 billion consensus, and EPS to $0.87‑$0.95, also below expectations. CEO Steve Sanghi warned that the data‑center market, which accounts for 16.7% of revenue, is in a bubble, and the firm cited supply‑chain delays as the main cause of the weaker outlook. The stock fell roughly 10% to around $58, marking a sharp decline despite the strong quarterly results.
Why it matters
The lower guidance suggests near‑term revenue and earnings will fall short of analyst forecasts, potentially pressuring the share price further (the company noted the miss). Analysts responded by cutting price targets, with several firms reducing their targets to as low as $62 ().
Key facts
- 1September net sales were $1.622 billion, a 42.2% year‑over‑year increase (). investing.com
- 2Non‑GAAP EPS for the quarter was $0.97 (). investing.com
- 3December‑quarter sales guidance is $1.573 billion to $1.638 billion, with a midpoint about 1% below the $1.63 billion consensus (). startupfortune.com
- 4December‑quarter EPS guidance is $0.87 to $0.95 per share (). startupfortune.com
- 5CEO Steve Sanghi said the data‑center market is "in the bubble" and represents 16.7% of Microchip’s sales (). finance.yahoo.com
- 6Shares fell about 10% to $58.35 after the guidance release (). startupfortune.com
Summary written by AlphAI AI Desk from 4 of 4 sources. Not investment advice. Figures are as stated by the linked sources.