NASDAQ$MCHP

Microchip Technology Inc · Q2 2022 earnings

Q2 2022 earnings · · Investor relations

Briefing

Reported record financial results due to strong revenue growth and margin expansion.

Microchip Technology reported record financial results for the second quarter of fiscal year 2022. Net sales reached a record $1.650 billion, up 26.0% year-over-year. Non-GAAP EPS also hit a record of $1.07 per diluted share.

  • Record net sales of $1.650 billion, up 26.0% from the year ago quarter.
  • GAAP EPS was $0.43 per diluted share.
  • Non-GAAP EPS was a record $1.07 per diluted share.
  • Record quarterly dividend declared of 23.2 cents per share, an increase of 6.2% sequentially and 25.9% from the year ago quarter.

Headline financials

Total Revenue

$1.65B

Previous: $1.31B+26.0%
EPS (adj)

$1.07

Previous: $0.78+37.2%
GAAP Gross Margin

64.8%

Previous: 61.7%+5.0%
GAAP Operating Margin

42.5%

Previous: 39.2%+8.4%
Quarterly Dividend

$0.23

No prior period
Capital Expenditures

-$165M

Previous: -$15.8M-943.0%
Free Cash Flow

$77.2M

Previous: $57.8M+33.6%
Net Income

$242M

Previous: $73.6M+228.8%
Operating Income

$416M

Previous: $226M+84.0%
Gross Profit

$1.07B

Previous: $808M+32.2%
Cash & Equivalents

$253M

Previous: $368M-31.2%
Total Assets

$16.2B

Previous: $16.8B-3.3%
Stock-Based Comp

$55.7M

Previous: $49.7M+12.1%

Revenue & EPS history

Microchip · Revenue · Quarterly

$1.65B

Q2 2022+26%vs Q2 2021
Beat estimate in 14 of 16 quarters(88%)
ActualEstimate

Forward guidance

For the third quarter of fiscal year 2022, Microchip expects net sales to be up between 4% and 8% sequentially.

Tailwinds

  • Net sales are expected to be between $1.716 billion and $1.782 billion.
  • Gross margin is expected to be between 65.3% and 65.7% on a GAAP basis and 65.8% and 66.2% on a non-GAAP basis.
  • Operating income is expected to be between 26.7% and 27.9% on a GAAP basis and 43.1% to 43.9% on a non-GAAP basis.
  • Earnings per diluted share are expected to be $0.58 to $0.60 on a GAAP basis and $1.14 to $1.20 on a non-GAAP basis.
  • Inventory days in the December 2021 quarter are expected to be in the range of 112 to 118 days.

Headwinds

  • GAAP Operating Expenses 37.8% to 38.6%
  • Other Expense, net $63.4 to $65.8 million
  • Income Tax Provision $67.2 to $90.5 million
  • Capital expenditures for the quarter ending December 31, 2021 are expected to be between $70 million and $90 million.
  • The forecast for GAAP tax expense excludes any unexpected tax events that may occur during the quarter, as these amounts cannot be forecasted.

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 Q2 2022

Historical avgQ2 2022

+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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