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Dec 31, 2021
Microchip Q3 2022 Earnings Report
Reported record financial results, driven by strong revenue growth.
Key Takeaways
Microchip Technology reported record net sales of $1.758 billion for the third quarter of fiscal year 2022, a 30.0% increase from the prior year's quarter. The company's GAAP EPS was $0.62 per diluted share, and non-GAAP EPS was $1.20 per diluted share, both exceeding guidance. Record quarterly dividend declared of 25.3 cents per share.
Record net sales of $1.758 billion, up 6.5% sequentially and up 30.0% from the year ago quarter.
Record gross margin of 65.6% on a GAAP basis and 66.1% on a Non-GAAP basis.
Record operating income of $515.0 million (GAAP) and $784.5 million (Non-GAAP).
Record quarterly dividend declared of 25.3 cents per share, an increase of 9.1% sequentially and 29.7% from the year ago quarter.
Forward Guidance
Microchip expects net sales in the March quarter to be up between 2% and 5% sequentially. At the mid-point of guidance for the March quarter, net sales will be 24% higher than the year ago quarter.
Positive Outlook
- Net Sales: $1.793 to $1.845 billion
- Gross Margin: 65.8% to 66.1% (GAAP), 66.2% to 66.6% (Non-GAAP)
- Operating Income: 28.6% to 29.5% (GAAP), 44.0% to 44.8% (Non-GAAP)
- Net Income: $376.2 to $382.2 million (GAAP), $691.2 to $727.2 million (Non-GAAP)
- Earnings per Diluted Share: $0.66 to $0.68 (GAAP), $1.22 to $1.28 (Non-GAAP)
Challenges Ahead
- Operating Expenses: 36.6% to 37.2% of sales (GAAP)
- Other Expense, net: $58.7 to $61.1 million (GAAP), $49.5 to $51.5 million (Non-GAAP)
- Income Tax Provision: $77.1 to $101.6 million (GAAP), $48.0 to $48.1 million (Non-GAAP)
- Inventory days in the March 2022 quarter are expected to be in the range of 120 to 125 days
Historical Earnings Impact
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Avg. Return Before/After Earnings
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