Chandler, Arizona-based Microchip Technology Incorporated (MCHP) develops, manufactures, and sells smart, connected, and secure embedded control solutions in the Americas and internationally. With a market cap of $40.4 billion, the company has two major product lines: Microcontrollers and Analog. 

MCHP is expected to report its Q1 earnings on Thursday, August 7, after the market closes. Ahead of the event, analysts expect MCHP to report an EPS of $0.17 per share, down 63.8% from a profit of $0.47 per share reported in the year-ago quarter. It has exceeded analysts' earnings estimates in three of the past four quarters, while missing on one occasion.

For the current year, analysts expect MCHP to report an EPS of $1.11, up 9.9% from $1.01 in fiscal 2024. 

MCHP stock has declined 18.3% over the past 52 weeks, underperforming the Technology Select Sector SPDR Fund’s (XLK) 16.3% surge and the S&P 500 Index’s ($SPX) 13.6% uptick during the same time frame.

On May 8, MCHP shares grew 2.2% following the release of its Q4 earnings. The chipmaker posted revenue of $970.5 million in the period, topping Street forecasts. Furthermore, the company’s adjusted EPS for the quarter came in at $0.04, surpassing the consensus estimates by 33.3%. For the quarter that ended in June, MCHP expects its EPS to range from 18 cents to 26 cents and its revenue to be in the range of $1.02 billion to $1.07 billion.

Wall Street analysts are highly bullish about MCHP’s stock, with a "Strong Buy" rating overall. Among 23 analysts covering the stock, 16 suggest a “Strong Buy,” one recommends a “Moderate Buy,” and six recommend a “Hold.” While MCHP currently trades above its mean price target of $72.43, the Street-high target of $90 indicates a potential upswing of 20.4% from the current market price.