FX.co ★ Microchip Technology Stock Down On Q3 Loss, Q4 Loss Outlook; Lifts Dividend

Shares of semiconductor company Microchip Technology Inc. (MCHP) fell by 6.9% during after-hours trading on Thursday and continue to decline by 6.7% in pre-market activity on the Nasdaq. This downturn followed the company's announcement of a third-quarter loss, contrasting with the profit realized in the same period last year, and attributed to weak sales. Furthermore, Microchip projects a further loss for the fourth quarter.

In a related announcement, the company declared a quarterly cash dividend on its common stock of 45.5 cents per share, marking a 1.1% increase compared to the same quarter the previous year. This dividend will be distributed on March 7 to shareholders registered as of February 24.

For the fourth quarter of 2025, Microchip forecasts a loss ranging from $79.4 million to $128.5 million. The anticipated loss per share is projected between $0.14 and $0.24. Additionally, the company expects its adjusted loss to fall between $29.3 million and $79.9 million, with adjusted earnings per share estimated to be between $0.05 and $0.15.

Quarterly sales during this period are projected to be between $920 million and $1 billion.

Analysts, on average, predict the company will report earnings of $0.22 per share on sales totaling $1.02 billion for the fourth quarter.

In the third quarter, Microchip reported a net loss of $53.6 million, or $0.10 per share, contrasting with a profit of $419.2 million, or $0.77 per share, a year earlier. The company attributed their third-quarter performance to the amortization of acquired intangible assets from previous acquisitions. On an adjusted basis, third-quarter income was $107.3 million, or $0.20 per share, compared to $592.7 million, or $1.08 per share, in the corresponding quarter of the previous year. Wall Street analysts had originally anticipated earnings of $0.28 per share for the quarter.

Revenue for the three-month period decreased by 42%, dropping to $1.026 billion from the $1.765 billion recorded in the previous year during the same timeframe.

As of pre-market activity on the Nasdaq, Microchip shares were priced at $49.54, reflecting a decline of 6.72%.