NASDAQ$MCHP

Microchip Technology Inc · Q4 2021 earnings

Q4 2021 earnings · · Investor relations

Briefing

Reported record financial results for the fourth quarter and fiscal year 2021.

Microchip Technology reported record financial results for the fourth quarter and fiscal year 2021. Record net sales of $1.467 billion, up 8.5% sequentially and up 10.6% from the year ago quarter. On a Non-GAAP basis: record gross margin of 64.1%; record operating income of $596.9 million and a record 40.7% of net sales; record net income of $521.4 million and record EPS of $1.85 per diluted share.

  • Record net sales of $1.467 billion, up 8.5% sequentially and up 10.6% from the year ago quarter.
  • Record gross margin of 63.2%.
  • Record operating income of $596.9 million and a record 40.7% of net sales.
  • Record quarterly dividend declared of 41.3 cents per share, an increase of 5.9% from the prior quarter.

Headline financials

Total Revenue

$1.47B

Previous: $1.33B+10.6%
EPS (adj)

$0.93

Previous: $0.73+27.4%
GAAP Gross Margin

64.1%

Previous: 61.4%+4.4%
GAAP Operating Margin

40.7%

Previous: 12.1%+236.4%
Quarterly Dividend

$0.41

No prior period
Capital Expenditures

$55.4M

Previous: $11.9M+365.5%
Free Cash Flow

$394M

Previous: $360M+9.4%
Net Income

$116M

Previous: $99.9M+16.1%
Operating Income

$308M

Previous: $161M+91.7%
Gross Profit

$927M

Previous: $814M+13.9%
Cash & Equivalents

$282M

Previous: $403M-30.0%
Total Assets

$16.5B

Previous: $17.4B-5.4%
Stock-Based Comp

$55M

Previous: $40.7M+35.1%

Revenue & EPS history

Microchip · Revenue · Quarterly

$1.47B

Q4 2021+10.6%vs Q4 2020
Beat estimate in 15 of 16 quarters(94%)
ActualEstimate

Forward guidance

For the first quarter of fiscal year 2022, Microchip expects net sales to be up between 3.5% and 7.5% sequentially.

Tailwinds

  • Net Sales: $1.519 to $1.577 billion
  • Gross Margin: 64.1% to 64.5%
  • Operating Income: 40.6% to 41.4%
  • Net Income: $521.2 to $553.6 million
  • Earnings per Diluted Share: $1.85 to $1.95

Headwinds

  • Gross Margin: 63.6% to 63.9%
  • Operating Expenses: 40.8% to 41.7%
  • Operating Income: 21.8% to 23.2%
  • Other Expense, net: $72.9 to $74.9 million
  • Income Tax Provision: $47.9 to $65.3 million

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 Q4 2021

Historical avgQ4 2021

+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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