Microchip Tops Expectations With 1Q Outlook

CHANDLER, Ariz. (AP) — Microchip Technology Inc. topped expectations with its fiscal first-quarter earnings forecast Tuesday, citing improving profit margins and demand.

The company said it expects a profit of 12 cents to 13 cents per share for the quarter ending June 30.

Sales are expected to grow 8 percent to 10 percent from fourth-quarter levels, implying $187.2 million to $190.6 million in revenue.

Excluding items, the company projected earnings of 17 cents to 18 cents per share.

Analysts, who typically exclude one-time gains or losses, were looking for 13 cents per share on $181.7 million.

Last month, Microchip said it was not providing an official forecast for the quarter because of economic uncertainty but released internal targets of 11 cents per share in earnings and $182 million in sales.

Microchip shares rose 96 cents, or 4.4 percent, to $22.73 in morning trading.