{"id":44715,"date":"2024-05-07T05:27:48","date_gmt":"2024-05-07T05:27:48","guid":{"rendered":"https:\/\/news.talkwithrattan.com\/index.php\/2024\/05\/07\/microchip-technology-expects-weak-quarterly-results-on-excess-inventory-impact\/"},"modified":"2024-05-07T05:27:48","modified_gmt":"2024-05-07T05:27:48","slug":"microchip-technology-expects-weak-quarterly-results-on-excess-inventory-impact","status":"publish","type":"post","link":"https:\/\/news.talkwithrattan.com\/index.php\/2024\/05\/07\/microchip-technology-expects-weak-quarterly-results-on-excess-inventory-impact\/","title":{"rendered":"Microchip Technology expects weak quarterly results on excess inventory impact"},"content":{"rendered":"
\"Microchip<\/div>


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Microchip Technology<\/a> forecast first-quarter net sales and profit below Wall Street<\/a> estimates on Monday, signaling weak demand<\/a> as customers continue to clear excess inventory, sending its shares down more than 4% in aftermarket trading. Slowing electric vehicle sales<\/a> at a time when customers are clearing excess inventory have weighed heavily on demand for chips in the automotive industry<\/a>, hitting chipmakers such as Microchip Technology amid an uncertain economic environment.<\/p>\n
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Customers had built excess inventory to avoid a supply crunch<\/a> during the pandemic.<\/p>\n

“We believe we are under shipping to end market demand, as customers and channel partners continued to reduce inventory. This situation has required us to implement ongoing austerity measures<\/a>, including taking actions to reduce factory utilization<\/a>, that will persist into the June quarter,” CEO Ganesh Moorthy said in a statement.<\/p>\n

Moorthy said the June quarter marks the bottom of the cycle for the company and the business will return to revenue growth<\/a> in the second quarter, ending September.<\/p>\n

In April, Israel-based Mobileye Global<\/a> reported a sharp fall in first-quarter revenue, hurt by fewer orders for its driver-assistance chips as clients rein in spending amid excess inventory.<\/p>\n

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Microchip forecasts net sales in the range of $1.22 billion to $1.26 billion for the first quarter ending in June 30, compared with analysts’ average estimate of $1.34 billion, according to LSEG<\/a> data. The Chandler<\/a>, Arizona-based company expects adjusted profit per share between 29 cents and 32 cents, compared with an estimate of 59 cents.<\/p>\n

The company posted net sales of $1.33 billion for the fourth quarter ended March 31, compared with analysts’ average estimate of $1.33 billion.<\/p>\n

Excluding items, its profit per share in the fourth quarter was 57 cents, in-line with analysts’ estimates.<\/p>\n<\/div>\n


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Microchip Technology forecast first-quarter net sales and profit below Wall Street estimates on Monday, signaling weak demand as customers continue to clear excess inventory, sending its shares down more than 4% in aftermarket trading. Slowing electric vehicle sales at a time when customers are clearing excess inventory have weighed heavily on demand for chips in […]<\/p>\n","protected":false},"author":2,"featured_media":44716,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"tdm_status":"","tdm_grid_status":"","fifu_image_url":"https:\/\/img.etimg.com\/photo\/88591548.cms","fifu_image_alt":"","footnotes":""},"categories":[607],"tags":[45763,447,45765,45761,36521,45759,8064,45764,6032,13317,45767,45768,45757,45766,7996,45758,7997,17502,45762,459,9043,2934,45760],"amp_enabled":true,"_links":{"self":[{"href":"https:\/\/news.talkwithrattan.com\/index.php\/wp-json\/wp\/v2\/posts\/44715"}],"collection":[{"href":"https:\/\/news.talkwithrattan.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/news.talkwithrattan.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/news.talkwithrattan.com\/index.php\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/news.talkwithrattan.com\/index.php\/wp-json\/wp\/v2\/comments?post=44715"}],"version-history":[{"count":1,"href":"https:\/\/news.talkwithrattan.com\/index.php\/wp-json\/wp\/v2\/posts\/44715\/revisions"}],"predecessor-version":[{"id":44717,"href":"https:\/\/news.talkwithrattan.com\/index.php\/wp-json\/wp\/v2\/posts\/44715\/revisions\/44717"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/news.talkwithrattan.com\/index.php\/wp-json\/wp\/v2\/media\/44716"}],"wp:attachment":[{"href":"https:\/\/news.talkwithrattan.com\/index.php\/wp-json\/wp\/v2\/media?parent=44715"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/news.talkwithrattan.com\/index.php\/wp-json\/wp\/v2\/categories?post=44715"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/news.talkwithrattan.com\/index.php\/wp-json\/wp\/v2\/tags?post=44715"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}