Microchip Technology raises fiscal 4th-qtr outlook due to ongoing demand

Microchip Technology raises fiscal 4Q outlook

CHANDLER, Ariz. — Chip maker Microchip Technology Inc. said Monday that it now expects fiscal fourth-quarter results to beat its earlier outlook due to ongoing strong demand.

Microchip Technology said it now expects a profit of 37 cents per share, or 42 cents per share when excluding certain items, for the quarter that ends March 31.

The company had previously forecast a profit of 34 cents to 36 cents per share, or 39 cents to 41 cents per share on an adjusted basis.

Analysts surveyed by Thomson Reuters have been expecting earnings of 36 cents per share.

Microchip Technology also said it now expects revenue to rise 8 percent quarter-over-quarter. Based on third-quarter revenue of $250.1 million, the company is looking for $270.1 million in fourth-quarter revenue.

Previously, the company said it expected revenue to rise 3 percent to 7 percent from the third quarter.

Analysts predicted $264 million in revenue.

Microchip shares rose 28 cents in after-hours trading, after finishing regular trading down 39 cents at $27.84.