Microchip Technology Stock Down On Q3 Loss, Q4 Loss Outlook; Lifts Dividend

(RTTNews) - Shares of semiconductor Microchip Technology Inc. (MCHP) declined 6.9% in the extended trading on Thursday and are currently down 6.7% in the pre-market activity on the Nasdaq, after the semiconductor company reported a loss in its third quarter, compared to prior year's profit with weak sales. The company also projects a loss for the fourth quarter.

Further, the company said its Board of Directors has declared a quarterly cash dividend on its common stock of 45.5 cents per share, up 1.1% from the year ago quarter. The dividend is payable on March 7 to stockholders of record on February 24.

For the fourth quarter of 2025, Microchip projects a loss between $79.4 million and $128.5 million. Loss per share is expected between $0.14 and $0.24.

Adjusted loss is expected in the range of $29.3 million to $79.9 million. On an adjusted basis, earnings per share are projected in the $0.05 to $0.15 range.

During the three-month period, quarterly sales are expected between $920 million to $1000 million.

On average, 17 analysts expect the company to post earnings of $0.22 per share on sales of $1.02 billion for the fourth quarter.

During the third quarter, Microchip posted net loss of $53.6 million or $0.10 per share, compared to profit of $419.2 million or $0.77 per share in the same period last year. The company said that the quarterly results were impacted by amortization of acquired intangible assets associated with our previous acquisitions. Adjusted income for the third quarter came in at $107.3 million or $0.20 per share, compared to $592.7 million or $1.08 per share in the previous-year quarter. Wall Street analysts expected the company to post earnings of $0.28 per share in the quarter.

Revenues for the three-month period declined 42 percent to $1.026 billion from $1.765 billion recorded in the same period last year.

In pre-market activity on the Nasdaq, Microchip shares were trading at $49.54, down 6.72 percent.

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