Over 3% Price Drop After Q1 2023

Microchip Technology Inc. (MCHP) last week released its Q1 2023 earnings results that are taking the stock price down. From trading nearly at its 20-day moving average, MCHP stock price now reached its 100-day moving average. Due to the bearish market trend, MCHP stock is heading downward with a downside trend.

MCHP Stock Price Performance

In the recent trading session, Microchip Technology (MCHP) stock price traded in between the price range of $85.13 to $82.50, while noted closing at $83.13, on August 10, 2023. With a 0.89% one-day price drop, MCHP stock lost $0.75. It must be noted that the stock price may be following a bearish trend for the last six months but showed an average volume of over 5 Million.

As the above chart shows, from trading nearly at $89.00, MCHP stock price dropped to its recent closing price with the potential strength of active bears. This price drop further takes the RSI of the stock toward its oversold zone. However, the pre-market price further showed a slight price drop, at press time.

The Financials of Microchip Technology

Microchip Technology Inc. (NASDAQ: MCHP), a publicly listed American corporation has a market cap of nearly $45.34 Billion. In the recent Q1 2023 results, the company reported its net income of $666.40 Million. MCHP price-to-sales ratio is 5.29 while the company has an Enterprise Value to EBITDA ratio of 12.00.

MCHP dividends are paid quarterly whereas its next dividend per share is expected to be $0.41, and as of August 11th, the Dividend Yield (TTM)% is 1.63%.

In Q1 2023, its MCHP earnings per share (EPS) is $1.64 whereas the estimation was $1.64 which accounts for a negative 0.06% surprise. The revenue for the same period reached $2.29 Billion despite the estimated figure of $2.29 Billion.

For the upcoming Q2 2023, the estimated EPS is $1.62, and the revenue is expected to reach $2.27 Billion.

In 2022, the revenue of Microchip Technology Incorporated amounted to $8.44 Billion. Out of this, $8.28 Billion came from its highest-performing source at the moment, “semiconductors”.

Moreover, the U.S. became the greatest contributor country in its revenue figure that last year brought Microchip Technology Incorporated to $1.86 Billion.

Disclaimer

The views and opinions stated by the author, or any people named in this article, are for informational ideas only and do not establish financial, investment, or other advice. Investing in or trading crypto or stock comes with a risk of financial loss.