What was Microchip Technology's Q4 profit forecast?

Microchip Technology forecasted adjusted earnings of approximately 40 cents per share for the fourth quarter.

Why are memory supply shortages impacting chipmakers like Microchip?

A global memory supply crunch is affecting the personal electronics industry, leading smartphone and PC makers to cut orders, which in turn hurts suppliers like Microchip.

How did Microchip Technology perform in the third quarter?

In the third quarter, Microchip Technology reported net sales of $1.19 billion and adjusted profit per share of 44 cents.

Home / Business and Economy / Microchip Profit Warning Sparks Industry Fears

Microchip Profit Warning Sparks Industry Fears

6 Feb

•

Summary

Chipmaker Microchip forecasts Q4 profit below estimates.
Memory supply crunch impacts wider semiconductor industry.
Company shares fell over 5% after the forecast was released.

Microchip Profit Warning Sparks Industry Fears

Chipmaker Microchip Technology (MCHP.O) has projected fourth-quarter profits that fall short of Wall Street's predictions, signaling potential difficulties within the broader semiconductor market. The company anticipates adjusted earnings of around 40 cents per share for the upcoming quarter.

This forecast contrasts with analysts' average estimate of 48 cents per share. Microchip expects net sales to range between $1.24 billion and $1.28 billion for the fourth quarter, slightly above the $1.23 billion estimate.

The company's outlook is influenced by a global memory supply crunch. This shortage has already strained the personal electronics industry, compelling smartphone and personal computer manufacturers to reduce orders as they contend with shipping delays for finished products.