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.
Visa Inc. (NYSE: V) reported first quarter 2023 earnings results today. Net revenues grew 12% year-over-year to $7.9 billion. GAAP net income rose 6% to $4.2 billion while EPS grew
Intel Corporation (NASDAQ: INTC) Thursday reported a decline in adjusted earnings and revenues for the fourth quarter. The semiconductor giant also provided guidance for the first quarter of 2023. Fourth-quarter
Shares of McCormick & Company Inc. (NYSE: MKC) were down over 5% on Thursday after the company missed expectations on its fourth quarter 2022 results and provided a lower-than-expected earnings