Net sales surged 38.3% annually to $1.38 billion, aided by further strong growth in the microcontroller business. Adjusted sales jumped 42.4% to $1.42 billion and came in above expectations.
Segment-wise, adjusted sales of Microcontroller moved up 13.2% annually to $748.4 million in the third quarter, outperforming the market, while analog sales surged 78% to $411.8 million.
During the three-month period, adjusted earnings climbed to $1.66 per share from $1.36 per share in the same period of last year
“Our non-GAAP net sales came in above the mid-point of our guidance that we issued on November 7, 2018. We are pleased that through record non-GAAP gross margins, tight expense control and continued synergies from our Microsemi acquisition, our non-GAAP operating margins exceeded the high-end of our guidance,” said CEO Steve Sanghi.
Microchip Earnings: Guidance falls short of consensus estimates
The management expects the strong financial performance to continue in the fourth quarter but warned about headwinds from the US-China trade war. Net sales are expected to be in the range of $1.251 billion to $1.403 billion and adjusted earnings between $1.26 per share and $1.53 per share. Unadjusted earnings per share are forecast to be in the $0.18-$0.41 range. The company is looking for adjusted net income in the range of $311.1 million to $385.2 million.
During the third quarter, the management declared a record quarterly dividend of 36.50 cents per share, to be paid on March 7, 2019, to stockholders of record on February 21, 2019.
Related: Microchip Technology Q3 2019 Earnings Conference Call Transcript
Microchip shares traded higher throughout Tuesday’s regular session after gaining 16% since the beginning of the year. Over the past twelve months, the stock gained about 3%.