Leading semiconductor manufacturer Microchip Technology Inc. (MCHP) recently revised its third-quarter fiscal 2015 guidance upward to better reflect an improving business environment and strong earnings potential with increased bookings.
Microchip now anticipates net sales to be down 2% to 5% sequentially. Non-GAAP earnings per share are anticipated to lie within 60 and 64 cents. Earlier in concurrence with the second-quarter fiscal 2015 earnings release, management had provided initial guidance for the third quarter. Management had then expected net sales to decline by 2% to 7% sequentially and non-GAAP earnings to be between 59 and 64 cents per share.
Based on the current projections, net GAAP sales are expected to be within $511.8 and $528.2 million. Net income is anticipated to come in the band of $67.2 to $73.1 million.
With better-than-expected bookings and expediting requests in its business driven by strong demand and robust product designs, Microchip anticipates continuing its bull run in the coming quarters. We also remain encouraged by its bullish guidance.
Microchip develops and manufactures microcontrollers, memory and analog and interface products for embedded-control systems, which are small, low-power computers designed to perform specific tasks. Striking features like quality, performance, reliability, ease of use, pricing and diversity of products have been the forte of Microchip and has helped it to become one of the better-positioned companies in the semiconductor universe.
Microchip presently has a Zacks Rank #4 (Sell). Other players in the industry that are worth mentioning include Anadigics, Inc. (ANAD), FormFactor Inc. (FORM) and Advanced Semiconductor Engineering Inc. (ASX), each carrying a Zacks Rank #2 (Buy).
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