Shares of Microchip Technology (NASDAQ:MCHP) tumbled nearly 5% in after-hours trading Monday after the company issued fiscal Q1 2025 guidance below analysts' estimates.
For the fiscal Q4 2024, Microchip reported earnings per share (EPS) of $0.57, matching consensus expectations. The quarterly revenue totaled $1.33 billion, also aligning with the consensus projections.
However, MCHP forecasts first-quarter 2025 EPS to range between $0.48 and $0.56, falling short of the analysts' estimates of $0.57. Similarly, it projects revenue for that quarter to be between $1.22 billion and $1.26 billion, also missing the forecasted $1.34 billion.
Moreover, the company’s Board of Directors declared a quarterly cash dividend of 45.2 cents per share on its common stock. The dividend will be paid on June 5, 2024, to shareholders recorded as of May 22, 2024.
"We experienced a major inventory correction in fiscal 2024, leading to a 9.5% decline in revenue to $7.6 billion. Despite this, our resilient operating model and rapid adjustment to the adverse business environment enabled us to navigate these challenges to achieve a non-GAAP operating margin of 43.9%," said Ganesh Moorthy, President and CEO.
"We remained committed to our capital return program, returning $1.89 billion through dividends and share buybacks during fiscal 2024, up 15.4% from the prior year, and we are tracking towards achieving our goal of returning 100% of adjusted free cash flow to shareholders by the current fiscal year-end."