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Top Tech Movers on February 8, 2017

PART:
1 2 3 4 5
Part 4
Top Tech Movers on February 8, 2017 PART 4 OF 5

Why Did Microchip Stock Rise on February 8?

Revenue rises 59.6% YoY

Semiconductor (SMH) company Microchip Technologies (MCHP) announced its fiscal 3Q17 results on February 7, 2017. Microchip’s non-GAAP1 revenues rose 59.6% YoY (year-over-year) to $881.2 million from $552 million in fiscal 3Q16.

MCHP’s net income rose 78.1% YoY from $138.4 million in fiscal 3Q16 to $246.5 million in fiscal 3Q17, whereas its EPS (earnings per share) rose from $0.64 to $1.05 during the same period.

Why Did Microchip Stock Rise on February 8?

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“Our December quarter financial results were extremely strong,” said Steve Sanghi, Microchip’s CEO. “Our non-GAAP net sales, gross margin percentage, operating profit percentage and diluted earnings per share all exceeded the high end of our updated guidance provided on November 29, 2016.”

Microchip stock rose 6% on February 8, 2017, after the company beat earnings estimates. Analysts expected the company to post EPS of $0.86. Microchip beat analyst estimates in fiscal 2Q17, fiscal 1Q17, and fiscal 4Q16 by 8%, 13.5%, and 2.9%, respectively.

Microchip generated a 15.9% return in the trailing one-month period. In comparison, it rose 15% YTD (year-to-date). MCHP stock rose 7.9% in the trailing five-day period and rose 79% during the trailing 12-month period.

Peer companies Texas Instruments (TXN), Qualcomm (QCOM), and Intel (INTC) rose 49%, 20.5%, and 26.2%, respectively, in the last 12 months.

Analysts’ recommendations

Of the 16 analysts covering Microchip (MCHP), ten issued “buy” recommendations, and six recommended a “hold” for the stock.

The analyst consensus stock price target for the company is $83.27, with a median target estimate of $85.00. As a result, MCHP is trading at a discount of 15% to its median target.

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