https://assets.capyfin.com/instruments/678fdc13234e27009c5d5a97.png avatar
Microchip
🇺🇸 NASDAQ:MCHP
View Company
OverviewEarningsDividends
•
Sep 30, 2022

Microchip Q2 2023 Earnings Report

Reported record financial results, driven by broad-based strength and disciplined execution.

Key Takeaways

Microchip Technology Incorporated announced record financial results for the second quarter of fiscal year 2023. Record net sales were $2.073 billion, up 5.6% sequentially and up 25.7% from the year ago quarter. On a GAAP basis, the company reported record gross margin, operating income, net income, and EPS. The company also declared a record quarterly dividend of 32.8 cents per share.

Record net sales of $2.073 billion, up 5.6% sequentially and up 25.7% from the year ago quarter.

Record GAAP gross margin of 67.4%, operating income of $755.1 million, net income of $546.2 million, and EPS of $0.98 per diluted share.

Record Non-GAAP gross margin of 67.7%, operating income of $971.4 million, net income of $814.4 million and EPS of $1.46 per diluted share.

Record quarterly dividend declared of 32.8 cents per share, an increase of 9.0% sequentially and 41.4% from the year ago quarter.

Total Revenue
$2.07B
Previous year: $1.65B
+25.6%
EPS
$1.46
Previous year: $1.07
+36.4%
Gross Margin
67.4%
Previous year: 64.8%
+4.0%
Operating Margin
36.4%
Previous year: 42.5%
-14.4%
Quarterly Dividend
$0.328
Previous year: $0.232
+41.4%
Gross Profit
$1.4B
Previous year: $1.07B
+30.9%
Cash and Equivalents
$307M
Previous year: $255M
+20.2%
Free Cash Flow
$683M
Previous year: $533M
+28.1%
Total Assets
$16.1B
Previous year: $16.2B
-0.5%

Microchip

Microchip

Forward Guidance

Microchip expects net sales in the December quarter to be up between 3% and 5% sequentially and expects to grow sequentially again in the March quarter. At the mid-point of our guidance for the December quarter, net sales would be 22.7% higher than the year-ago quarter.

Positive Outlook

  • Net sales are expected to be between $2.135 billion and $2.177 billion.
  • GAAP gross margin is expected to be between 67.5% and 67.7%.
  • Non-GAAP gross margin is expected to be between 67.8% and 68.0%.
  • GAAP earnings per diluted share is expected to be between $1.03 and $1.07.
  • Non-GAAP earnings per diluted share is expected to be between $1.54 and $1.56.

Challenges Ahead

  • GAAP operating expenses are expected to be between 30.7% and 30.9% of net sales.
  • GAAP other expense, net is expected to be between $52.9 million and $55.3 million.
  • GAAP income tax provision is expected to be between $134.7 million and $176.0 million.
  • Microchip's inventory days in the December 2022 quarter are expected to be in the range of 143 to 147 days.
  • Capital expenditures for the quarter ending December 31, 2022 are expected to be between $105 million and $125 million.

Company Overview

Full financial data and analysis

View Microchip