RTTNews | Nov 6, 2020 10:42AM EST

10:41 Friday, November 6, 2020 (RTTNews.com) - Shares of Microchip Technology Inc. (MCHP) are gaining more than 4 percent or $5.19 in Friday's morning trade at $123.57, after touching a new 52-week high of $123.93 as the company's second-quarter results beat analysts' estimates and it forecast third- quarter results also above their expectations.

Thursday, Microchip Technology said its second-quarter net income fell to $73.6 million or $0.27 per share from $108.9 million or $0.43 per share in the prior-year quarter. Adjusted earnings were $1.56 per share, compared to $1.43 per share last year. Net sales declined 2.1 percent to $1.31 billion from $1.34 billion in the year-ago period.

Analysts polled by Thomson Reuters had a consensus estimate for earnings of $1.43 per share on revenues of $1.26 billion.

For the third quarter, Microchip Technology forecast adjusted earnings of $1.51 to $1.63 per share on net sales in a range of $1.310 billion to $1.375 billion. The Street expects earnings of $1.46 per share on revenues of $1.28 billion.

The company's board declared a record quarterly cash dividend on its common stock of 36.85 cents per share.

In addition, Microchip Technology said its long serving CEO Steve Sanghi will transition to an Executive Chair role, effective March 1, 2021. Microchip's current President, Ganesh Moorthy, will step into the role of President and CEO on the same day. Moorthy will also join the Board of Directors, effective January 4, 2021.

Read the original article on RTTNews ( https://www.rttnews.com/3144008/stock-alert-microchip-technology-at-new-high-as-results-outlook-above-estimates.aspx)

For comments and feedback: contact editorial@rttnews.com

Copyright(c) 2020 RTTNews.com All Rights Reserved