NASDAQ$MCHP

Microchip Technology Inc · Q1 2023 earnings

Q1 2023 earnings · · Investor relations

Briefing

Reported record financial results, driven by robust demand and capacity improvements.

Microchip Technology reported record net sales of $1.964 billion for the first quarter of fiscal year 2023, a 25.1% increase from the year-ago quarter. GAAP EPS was $0.90, and non-GAAP EPS was $1.37. The company also declared a record quarterly dividend of 30.1 cents per share.

  • Record net sales of $1.964 billion, up 25.1% from the year-ago quarter.
  • GAAP EPS was $0.90 per diluted share, up from $0.45 in the prior year's first fiscal quarter.
  • Non-GAAP EPS was $1.37 per diluted share, up from $0.99 in the prior year's first fiscal quarter.
  • Record quarterly dividend declared of 30.1 cents per share, an increase of 37.8% from the year-ago quarter.

Headline financials

Total Revenue

$1.96B

Previous: $1.57B+25.1%
EPS (adj)

$1.37

Previous: $0.99+38.4%
GAAP Gross Margin

66.7%

Previous: 64.2%+3.9%
GAAP Operating Margin

35.7%

Previous: 41.7%-14.4%
Capital Expenditures

-$122M

Previous: -$86.3M-41.3%
Free Cash Flow

$385M

Previous: $167M+131.4%
Net Income

$507M

Previous: $253M+100.6%
Operating Income

$701M

Previous: $369M+90.2%
Gross Profit

$1.31B

Previous: $1.01B+30.0%
Cash & Equivalents

$377M

Previous: $278M+35.8%
Total Assets

$16.2B

Previous: $16.3B-0.4%
Stock-Based Comp

$41.2M

Previous: $56.6M-27.2%

Revenue & EPS history

Microchip · Revenue · Quarterly

$1.96B

Q1 2023+25.1%vs Q1 2022
Beat estimate in 13 of 16 quarters(81%)
ActualEstimate

Forward guidance

The company expects net sales in the September quarter to be up between 3% and 7% sequentially. At the mid-point of our guidance for the September quarter, net sales would be 25% higher than the year-ago quarter.

Tailwinds

  • Net Sales $2.023 to $2.101 billion
  • Gross Margin 66.9% to 67.3%
  • Operating Income 34.7% to 35.7%
  • Earnings per Diluted Share $0.94 to $0.95
  • Non-GAAP Earnings per Diluted Share $1.42 to $1.46

Headwinds

  • Other Expense, net $53.4 to $55.8 million
  • Income Tax Provision $119.9 to $163.0 million
  • GAAP Operating Expenses 31.6% to 32.2%
  • Our actual inventory level will depend on the inventory that our distributors decide to hold to support their customers
  • Our actual inventory level will depend on overall demand for our products, and our production levels.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 19 quarterly earnings reports · overlaid with Q1 2023

Historical avgQ1 2023

+0.9%

Avg return

Earnings day

+0.3%

Avg return

5 days after

+3.3%

Avg return

30 days after

55%

40 / 73 earnings

Positive

+11.2%

Q3 2020

Best reaction

-15.0%

Q1 2025

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q4 2026+1.1%-2.3%-0.4%
Q3 2026-2.6%+3.5%-17.0%
Q2 2026-5.2%-6.3%+10.9%
Q1 2026-6.7%-0.7%-0.5%
Q4 2025-1.0%-5.2%+11.4%
Q3 2025-2.3%+1.4%+12.5%
Q2 2025-1.0%-2.1%-21.8%
Q1 2025-15.0%-15.9%-7.5%
Q4 2024+0.8%+0.2%+3.2%
Q3 2024-1.0%-2.3%+2.1%
Q2 2024+7.6%+6.0%+19.2%
Q1 2024-7.5%-6.4%-8.8%
Q4 2023-1.4%-4.6%+1.2%
Q3 2023+5.2%+6.6%+1.8%
Q2 2023+5.3%+11.7%+27.5%
Q1 2023+5.9%+3.3%-6.1%
Q4 2022+1.0%-0.8%+2.0%
Q3 2022-7.4%-4.6%-14.3%
Q2 2022+7.5%+3.9%+6.9%
Q1 2022+1.7%+3.3%+7.8%
Q4 2021+2.8%-0.1%+6.7%
Q3 2021+4.0%+8.7%+4.0%
Q2 2021+10.6%+7.6%+27.3%
Q1 2021-6.1%-5.6%+3.9%
Q4 2020+7.1%+2.7%+31.3%
Q3 2020+11.2%+8.9%-9.1%
Q2 2020-4.2%-3.6%-3.1%
Q1 2020+5.7%+5.1%+6.2%
Q4 2019-5.1%-11.2%-11.1%
Q3 2019+8.2%+5.8%+2.3%
Q2 2019+6.3%-0.5%+0.3%
Q1 2019-10.6%-14.0%-15.0%
Q4 2018+3.5%+4.7%+15.2%
Q3 2018-7.4%-9.5%+6.5%
Q2 2018-2.4%-2.2%-7.8%
Q1 2018+4.6%+6.0%+10.1%
Q4 2017+4.1%+4.7%+15.1%
Q3 2017+6.7%+2.5%+6.2%
Q2 2017+6.2%+4.9%+7.1%
Q1 2017+7.2%+7.0%+7.5%
Q4 2016-2.0%
Q3 2016-1.0%
Q2 2016-1.8%
Q1 2016-0.1%
Q4 2015+4.0%
Q3 2015-1.4%
Q2 2015+2.1%
Q1 2015-0.5%
Q4 2014+0.3%
Q3 2014+0.5%
Q2 2014+6.6%
Q1 2014+6.2%
Q4 2013+4.0%
Q3 2013+5.6%
Q2 2013-4.7%
Q1 2013+3.3%
Q4 2011-1.1%
Q4 2012-1.5%
Q3 2012+2.3%
Q2 2012+6.9%
Q1 2012-5.7%
Q3 2011-0.6%
Q4 2009-0.4%
Q2 2011-0.4%
Q1 2011+0.1%
Q4 2008+3.2%
Q4 2010+3.2%
Q3 2010+1.4%
Q3 2009+1.4%
Q2 2010+2.8%
Q1 2009-0.4%
Q2 2009-0.4%
Q1 2010-0.4%

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