Earnings of semiconductor company Microchip Technology Inc. (NASDAQ: MCHP) declined year-over-year in the second quarter of 2020 and matched the estimates, even as sales contracted and missed the forecast. The company’s stock dropped during Tuesday’s after-hours trading session, following the announcement.
During the three-month period, adjusted earnings dropped to $1.43 per share from $1.58 per share in the same period of last year. Reported profit was $108.9 million or $0.43 per share, compared to $96.3 million or $0.38 per share a year earlier. The bottom-line, which matched Wall Street’s estimates, was adversely impacted by purchase accounting adjustments associated with the recent acquisitions.
Net sales dropped 6.6% annually to $1.34 billion amid weak performance by the key business units. The top-line came in slightly below analysts’ expectations and the mid-point of the management’s projection.
“End-market demand was $8.6 million higher than GAAP (sell-in) revenue in the September 2019 quarter. As a result, distribution inventory days declined from 32 to 30 days. We have only had one quarter in the past fifteen years where our days of inventory at our distributors have been lower than the levels at the end of the September 2019 quarter,” said CEO Steve Sanghi.
Looking ahead to the third quarter, the management expects net sales to be in the range of $1.204 billion to $1.311 billion and adjusted earnings between $1.12 per share and $1.32 per share.
On an unadjusted basis, the company expects a loss of 11 cents to earnings of 17 cents for the quarter. The company is looking for third-quarter adjusted net income in the range of $286.7 million to $348.3 million.
Microchip’s board of directors declared a record quarterly cash dividend of 36.65 cents per share, to be paid on December 5, 2019 to stockholders of record on November 21, 2019.
Microchip shares climbed 42% since the beginning of 2019 and 39% since last year. The stock, which hit an all time-high this week, closed Tuesday’s regular session higher.
Video game retailer GameStop Corp. (NYSE: GME), which has become the talk of the town after the unprecedented stock rally in recent weeks, reported a narrower loss for the first
The steel industry managed to shrug off the pandemic blues earlier than expected as the recovery in industrial activity pushed up demand. With the vaccination drive and the government’s aggressive
Campbell Soup Company (NYSE: CPB) reported third-quarter 2021 earnings results today. Net sales decreased 11% year-over-year to $1.98 billion, as a result of lapping the demand surge at the onset