Microchip Technology (NASDAQ:MCHP) posted second-quarter earnings that surpassed analyst expectations, but a disappointing outlook for the next quarter led to a 2% drop in pre-market trading. The semiconductor company reported adjusted earnings per share of $0.46, ahead of the $0.43 analyst estimate. Revenue came in at $1.16 billion, slightly above the expected $1.15 billion, though down 48.4% year-over-year.
For the upcoming third quarter, Microchip’s guidance fell short. The company projected earnings per share between $0.25 and $0.35, well below the Street consensus of $0.46, and forecasted revenue in the range of $1.025 billion to $1.095 billion, missing the $1.18 billion analyst expectation.
President and CEO Ganesh Moorthy attributed the softer outlook to ongoing inventory adjustments and economic headwinds, particularly in Europe. He noted that recent signs of recovery had been inconsistent, with flat sequential bookings, stable cancellation rates, and an increase in expedite requests, reflecting ongoing supply chain pressures.