May. 9 at 1:15 AM
$MCHP delivered a standout Q4 performance, beating analyst estimates with
$1.311B in revenue (up 35.1% YOY) and an EPS of
$0.57. Results were driven by broad market recovery, channel normalization, and robust demand in the AI, automotive, and industrial sectors, with the strongest bookings in 4 years. Management cautioned that lead times are starting to increase for many products due to rising constraints. Specific shortages have emerged in substrates and subcontracting capacity.
$MCHP issued upbeat guidance, projecting revenue between
$1.442-
$1.469B and EPS of
$0.67–
$0.71 (above consensus). Profitability is expected to improve, with non-GAAP gross margins guided upward to 62.25%–63%.
Analysts liked that
$MCHP is successfully streamlining its balance sheet; inventory levels fell from 201 to 185 days, while distribution channel supply hit record lows. Some noted a negative GAAP net margin, suggesting that one-time charges or adjustments continue to weigh on reported GAAP profits.
