Microchip Technology Incorporated (NASDAQ: MCHP) reported stronger-than expected earnings and revenues for the fourth quarter of 2020. The stock gained soon after the announcement but slipped into the negative territory later.
Adjusted earnings dropped to $1.46 per share in the fourth quarter from $1.48 per share a year earlier and exceeded the market’s forecast. Net income declined to $100 million or $0.39 per share from $174.7 million or $0.70 per share a year earlier.
The company reported net sales of $1.33 billion for the three-month period, which is unchanged from the prior-year period. The results also exceeded Wall Street’s prediction.
Shares of Microchip Technology closed Thursday’s trading session higher but dropped during the extended session. The stock, which is trading at the levels seen a year ago, dropped 21% since the beginning of the year.