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Sep 30, 2023
Microchip Q2 2024 Earnings Report
Microchip's financial performance was in line with guidance, despite a turbulent macro environment.
Key Takeaways
Microchip Technology Incorporated reported Q2 2024 financial results with net sales of $2.254 billion, a decrease of 1.5% sequentially but an increase of 8.7% from the previous year. GAAP EPS was $1.21, and Non-GAAP EPS was $1.62. The company also declared a record quarterly dividend of 43.9 cents per share.
Net sales reached $2.254 billion, down 1.5% sequentially but up 8.7% year-over-year.
GAAP EPS was $1.21 per diluted share, while Non-GAAP EPS was $1.62 per diluted share.
The company returned approximately $562.5 million to shareholders through dividends and stock repurchases.
A record quarterly dividend of 43.9 cents per share was declared for the December quarter, a 33.8% increase from the previous year.
Forward Guidance
Microchip anticipates net sales in the December quarter to be down 15% to 20% sequentially.
Positive Outlook
- Semiconductors remain the engine of innovation for the applications and markets Microchip serves.
- Focus on Total System Solutions and key market megatrends is fueling strong design-win momentum.
- Expectation of above-market long-term growth.
- Selectively adding capital equipment to maintain and grow internal manufacturing capabilities.
- Continued commitment to Total System Solutions.
Challenges Ahead
- Broader economic landscape characterized by decelerating economic activity.
- Escalating business ambiguity.
- Proactive measures to assist clients in managing their inventory positions and backlog.
- Anticipate net sales in the December quarter to be down 15% to down 20% sequentially.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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