Microchip Technology late Thursday beat Wall Street's targets for its fiscal second quarter and guided higher for the current period. MCHP stock jumped in extended trading.
The Chandler, Ariz.-based company earned an adjusted $1.46 a share on sales of $2.07 billion in the quarter ended Sept. 30. Analysts polled by FactSet expected earnings of $1.44 a share on sales of $2.06 billion. On a year-over-year basis, Microchip earnings rose 36% while sales climbed 26%.
The company cited "broad-based strength" in its business for the outperformance.
For the current quarter, Microchip predicted adjusted earnings of $1.55 a share on sales of $2.16 billion. That's based on the midpoint of its guidance. Analysts had expected earnings of $1.45 a share on sales of $2.09 billion. In the year-earlier period, Microchip earned $1.20 a share on sales of $1.76 billion.
MCHP Stock Jumps After Report
Also, Microchip hiked its quarterly cash dividend 9% to 32.8 cents per share.
In after-hours trading on the stock market today, MCHP stock advanced 5.6% to 62.80. During the regular session Thursday, MCHP stock fell 2% to close at 59.46.
Microchip makes smart, connected and secure embedded control solutions. It sells semiconductor devices to the industrial, automotive, consumer, aerospace and defense, communications and computing markets.
"Amid changing economic conditions and ongoing global supply disruption, our business remains strong as we exited the September quarter with the highest unsupported backlog ever," Chief Executive Ganesh Moorthy said in a news release.
He added, "Demand continues to outpace supply, and we have considerable backlog requested by customers in the December quarter that we currently cannot fulfill until later quarters, despite growing capacity from last quarter."
Microchip Has Mediocre Composite Rating
MCHP stock ranks eighth out of 32 stocks in IBD's semiconductor manufacturing industry group, according to IBD Stock Checkup. It has a so-so IBD Composite Rating of 65 out of 99. However, MCHP stock is on IBD's Tech Leaders list.
Elsewhere in the sector, a bunch of semiconductor stocks fell Thursday on disappointing December-quarter guidance. Late Wednesday, Power Integrations, Qorvo, Qualcomm and SiTime guided well below analyst estimates for the calendar fourth quarter.
Meanwhile, Macom Technology Solutions delivered a modest beat-and-raise report early Thursday.
Follow Patrick Seitz on Twitter at @IBD_PSeitz for more stories on consumer technology, software and semiconductor stocks.
