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Can Microchip Technology Meet These Numbers?

Monday - 4/29/2013, 2:00am  ET

Microchip Technology is expected to report Q4 earnings around May 1. Here's what Wall Street wants to see:

The 10-second takeaway
Comparing the upcoming quarter to the prior-year quarter, average analyst estimates predict Microchip Technology's revenues will grow 26.0% and EPS will grow 2.2%.

The average estimate for revenue is $427.0 million. On the bottom line, the average EPS estimate is $0.47.

Revenue details
Last quarter, Microchip Technology logged revenue of $416.0 million. GAAP reported sales were 26% higher than the prior-year quarter's $329.2 million.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
Last quarter, non-GAAP EPS came in at $0.41. GAAP EPS of $0.05 for Q3 were 87% lower than the prior-year quarter's $0.38 per share.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Recent performance
For the preceding quarter, gross margin was 58.1%, 60 basis points better than the prior-year quarter. Operating margin was 14.7%, much worse than the prior-year quarter. Net margin was 2.4%, much worse than the prior-year quarter.

Looking ahead

The full year's average estimate for revenue is $1.60 billion. The average EPS estimate is $1.84.

Investor sentiment
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 306 members out of 325 rating the stock outperform, and 19 members rating it underperform. Among 96 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 95 give Microchip Technology a green thumbs-up, and one give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Microchip Technology is outperform, with an average price target of $34.89.

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This article was originally published as Can Microchip Technology Meet These Numbers?on Fool.com

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