TheStreet

Microchip Technology (MCHP - Get Report)  was falling in premarket trading Wednesday after the chipmaker provided guidance that missed estimates. 

The company reported fiscal fourth-quarter adjusted earnings of $1.48 per share on revenue of $1.33 billion. Analysts were expecting the company to report earnings of $1.39 per share on revenue of $1.33 billion.

However, the company also said it expects to report first-quarter earnings between $1.26 and $1.49 per share, short of Wall Street's $1.57 per share expectations. Microchip Technology also expects to generate between $1.26 billion and $1.4 billion in revenue - the top of the range is just above analysts' $1.39 billion expectations. 

"Our March quarter financial results were very good in spite of a challenging economic backdrop," said Steve Sanghi, CEO. "Our net sales came in above the mid-point of our narrowed guidance range that we issued on March 5, 2019. Our GAAP and non-GAAP gross margin percentage were above the high-end of our guidance and our operating expenses as a percentage of sales were below the low-end of our guidance."

Shares fell 4.3% to $90.04 in trading.