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Dec 31, 2022
Microchip Q3 2023 Earnings Report
Microchip reported record financial results driven by sequential and year-over-year revenue growth and strong operating margins.
Key Takeaways
Microchip Technology Incorporated announced record financial results for the third quarter of fiscal year 2023, with record net sales of $2.169 billion, up 4.6% sequentially and 23.4% from the year-ago quarter. The company achieved record GAAP gross margin, operating income, net income, and EPS, as well as record non-GAAP gross margin, operating income, net income, and EPS. Microchip paid down $719.1 million of debt and returned approximately $409.8 million to shareholders through dividends and share repurchases.
Record net sales of $2.169 billion, up 4.6% sequentially and 23.4% year-over-year.
Record GAAP EPS of $1.04 per diluted share and record Non-GAAP EPS of $1.56 per diluted share.
Paid down $719.1 million of debt in the December 2022 quarter.
Declared a record quarterly dividend of 35.8 cents per share, up 9.1% sequentially and 41.5% from the year-ago quarter.
Forward Guidance
Microchip expects net sales in the March quarter to be up between 1% and 4% sequentially and expects to grow revenue sequentially again in the June quarter. At the mid-point of our guidance for the March quarter, net sales would be 20.6% higher than the year-ago quarter.
Positive Outlook
- Net Sales: $2.191 to $2.256 billion
- GAAP Gross Margin: 67.8% to 68.0%
- Non-GAAP Gross Margin: 68.1% to 68.3%
- GAAP Earnings per Diluted Share: $1.07 to $1.09
- Non-GAAP Earnings per Diluted Share: $1.61 to $1.63
Challenges Ahead
- GAAP Operating Expenses: 30.3% to 30.7% of net sales
- GAAP Operating Income: 37.2% to 37.6% of net sales
- Other Expense, net: $45.8 to $48.2 million
- Income Tax Provision: $165.1 to $204.1 million
Historical Earnings Impact
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Avg. Return Before/After Earnings
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