NASDAQ$MCHP

Microchip Technology Inc · Q4 2022 earnings

Q4 2022 earnings · · Investor relations

Briefing

Reported record financial results for the fourth quarter and fiscal year 2022.

Microchip Technology reported record net sales of $1.844 billion for the quarter ended March 31, 2022, up 25.7% from the year-ago quarter. GAAP EPS was $0.77 per diluted share, while non-GAAP EPS was a record $1.35 per diluted share. The company declared a record quarterly dividend of 27.6 cents per share, up 33.7% from the year-ago quarter.

  • Record net sales of $1.844 billion, up 25.7% from the year-ago quarter.
  • GAAP EPS of $0.77 per diluted share.
  • Non-GAAP EPS was a record $1.35 per diluted share.
  • Declared a record quarterly dividend of 27.6 cents per share, up 33.7% from the year-ago quarter.

Headline financials

Total Revenue

$1.84B

Previous: $1.47B+25.7%
EPS (adj)

$1.35

Previous: $0.93+45.2%
GAAP Gross Margin

66.2%

Previous: 64.1%+3.3%
GAAP Operating Margin

29.8%

Previous: 40.7%-26.8%
Quarterly Dividend

$0.28

Previous: $0.41-33.2%
Capital Expenditures

$115M

Previous: $55.4M+106.9%
Free Cash Flow

$633M

Previous: $394M+60.8%
Net Income

$438M

Previous: $116M+277.5%
Operating Income

$550M

Previous: $308M+78.4%
Gross Profit

$1.22B

Previous: $927M+31.7%
Cash & Equivalents

$319M

Previous: $282M+13.3%
Total Assets

$16.2B

Previous: $16.5B-1.7%
Stock-Based Comp

$47M

Previous: $55M-14.5%

Revenue & EPS history

Microchip · Revenue · Quarterly

$1.84B

Q4 2022+25.7%vs Q4 2021
Beat estimate in 13 of 16 quarters(81%)
ActualEstimate

Forward guidance

Microchip expects net sales in the June quarter to be up between 4% and 8% sequentially. At the mid-point of guidance, net sales will be 24.6% higher than the year-ago quarter.

Tailwinds

  • Net sales are expected to be $1.918 to $1.992 billion.
  • GAAP gross margin is expected to be 66.4% to 66.8%.
  • Non-GAAP gross margin is expected to be 66.8% to 67.2%.
  • GAAP earnings per diluted share are expected to be $0.85 to $0.86.
  • Non-GAAP earnings per diluted share are expected to be $1.32 to $1.36.

Headwinds

  • GAAP operating expenses are expected to be 32.6% to 33.2% of net sales.
  • GAAP other expense, net, is expected to be $49.8 to $52.2 million.
  • GAAP income tax provision is expected to be $108.7 to $147.9 million.
  • Capital expenditures for the quarter are expected to be between $120 million and $140 million.
  • The forecast for GAAP tax expense excludes any unexpected tax events that may occur during the quarter.

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 2022

Historical avgQ4 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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