Shares of Microchip Technology Inc. closed lower on Friday, shedding 2.6% to finish at $76.01. The move came as investors digested the company's latest financial report and a forward outlook that left the market with mixed signals ahead of the weekend.
Financial Performance and Guidance
The semiconductor firm reported fiscal third-quarter net sales of $1.186 billion, a 15.6% increase year-over-year. For the current March quarter, management provided revenue guidance in the range of $1.24 billion to $1.28 billion. CEO Steve Sanghi noted the period benefits from a "substantially better" starting backlog and strong bookings, while CFO Eric Bjornholt highlighted a $26 million reduction in net debt.
Analyst Sentiment Diverges
Wall Street analysts offered conflicting takes following the report. TD Cowen maintained a Hold rating but reduced its price target to $70 from $75, expressing concern that the outlook may have disappointed some earlier optimism. In contrast, JPMorgan reiterated an Overweight rating and raised its price target to $95 from $85, citing better-than-expected margins and earnings.
The company also declared a quarterly cash dividend of 45.5 cents per share, payable on March 10 to shareholders of record as of February 23.
Supply Chain and Institutional Interest
A global shortage of memory components continues to disrupt electronics manufacturing, leading some customers to trim orders—a factor that weighed on the stock after hours on Thursday. Meanwhile, in a separate filing, BlackRock disclosed it held a 10% stake in Microchip as of January 31, amounting to roughly 54.3 million shares, underscoring significant institutional ownership.
With U.S. markets closed until Monday, traders will be watching for any further analyst adjustments and how the broader chip sector responds to these latest developments.