Why Is Microchip Technology Stock Diving Premarket Friday?
Portfolio Pulse from Lekha Gupta
Microchip Technology Inc (NASDAQ:MCHP) shares dropped in premarket trading after reporting Q3 FY24 results with lower-than-expected net sales and a decline in margins. Despite beating EPS estimates, the company's revenue fell 18.6% Y/Y, and it warned of cautious demand outlook due to a weak macro environment. Microchip announced plans for factory shutdowns, underutilization charges, and a raised quarterly dividend. The company's Q4 outlook is below consensus estimates.
February 02, 2024 | 12:40 pm
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Microchip Technology reported lower-than-expected Q3 FY24 net sales and a decline in margins, leading to a premarket stock drop. The company also announced cautious demand outlook and plans for factory shutdowns.
The premarket stock drop is directly tied to the disappointing Q3 FY24 financial results, including lower-than-expected sales and declining margins. The cautious demand outlook and planned factory shutdowns further contribute to negative investor sentiment, likely impacting the stock price negatively in the short term.
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