The stock price of the semiconductor supplier of embedded control solutions fell 1.8% to $83.36 after the company's announcement that it was holding the line on its previous earnings and revenue estimates for the current quarter ending in September.
The Chandler, Ariz.-based company, which has been scrambling to deal with the fallout from the trade war between the United States and China, said it still expects net sales to ring in between $1.323 billion and $1.375 billion, ranging from no growth to a 4% increase.
The company said it also still expects earnings to come in between $1.37 and $1.49 a share in the current quarter.
Steve Sanghi, Microchip's CEO, is set to offer his take on the company's current financial and product outlook at 2:10 p.m. ET at the Citi 2019 Global Technology Conference.
Zacks Investment Research last month dropped its rating on Microchip's stock last month to hold from buy.
Microchip continues to ride "strong demand for memory and analog and interface products" with an expanding product portfolio poised to expand its customer base, Zacks noted.
But Zacks also warned that the trade war and the company's exposure to tariffs are also likely to take a toll.
"Significant exposure to Asian markets amid imposition of tariff owing to trade war between the US and China is likely to weigh on margin expansion," Zacks noted.