From Financial Modeling Prep: 2024-11-06 07:44:00

Microchip Technology (NASDAQ:MCHP) exceeded Q2 earnings expectations with $0.46 EPS and $1.16 billion revenue, slightly beating estimates. However, a disappointing Q3 outlook caused a 2% pre-market drop. Q3 guidance fell short with projected EPS of $0.25-$0.35 and revenue of $1.025-$1.095 billion, citing inventory adjustments and economic challenges in Europe.

CEO Ganesh Moorthy attributed the weak outlook to ongoing inventory adjustments and economic headwinds, especially in Europe. Recent signs of recovery have been inconsistent, with flat sequential bookings, stable cancellation rates, and increased expedite requests, reflecting ongoing supply chain pressures.



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