Microchip Technology Inc (NASDAQ:MCHP) gained slightly during today’s regular trading session, jumping 17 cents – or 0.26 percent – from yesterday’s closing price of $66.03.
The semiconductor manufacturer announced after the market close yesterday that it has adjusted its earnings guidance for the fiscal third quarter, and now expects its net income to be posted in the range of 87 cents to 94 cents per share. Microchip’s previous guidance called for earnings between 85 cents and 95 cents per share.
The midpoint of the company’s earnings outlook effectively jumped from 90 cents to 90.5 cents. Wall Street analysts, on average, are expecting 90 cents.
The company previously told its shareholders – on November 7, specifically – that its consolidated non-GAAP net sales would be flat to down six percent. New guidance, as of yesterday, calls for non-GAAP earnings to decline in the range of one percent and four percent.
Microchip, which is one of the fastest-growing manufacturers of 16-bit and 32-bit microcontrollers globally, acquired fellow semiconductor maker Micrel Inc back in 2015 and bought microcontroller designer Atmel earlier this year. Both of the recently-purchased companies are still being integrated into Microchip’s regular operations.
“Micrel’s 6-inch fab in San Jose is now closed which we expect to drive significant gross margin benefits after the higher cost inventory from that factory is sold through and our lower costs from our higher volume factories are realized,” said the company’s Chief Executive Officer, Steve Sanghi. “The integration of Atmel continues to progress as we approach a major milestone of integrating business systems on January 1, 2017.”
According to Sanghi, the company is set to achieve its long-term business model of 33 percent non-GAAP operating income sometime before the final quarter of fiscal 2018.
Apart from announcing its narrowed-down guidance, Microchip today told investors that its “MOST150” technology is now being built into luxury carmaker Aston Martin’s new Lagonda DB11 car – the first Aston Martin model to base its “infotainment” platform on MOST150. The car brand’s Lagonda model was already running an earlier version of the product, but “smoothly migrated” to the newest technology for the vehicle’s most recently updated model.