Microchip Technology Boosts Q4 Guidance; Shares Rise (MCHP)

in Gold Gold Investing Guidance by admin — March 16, 2010 6:05 am | no comments

Semiconductor maker Microchip Technology Inc. ( MCHP ) late Monday boosted its fourth quarter guidance, sending its shares higher. The company said it now expects fourth quarter net income of 37 cents per share, or 42 cents per share on an adjusted basis. That compares to prior guidance for 34 to 36 cents per share, or 39 cents to 41 cents per share when excluding one-time items. On average, Wall Street analysts expect a lower profit of 36 cents per share for the quarter. MCHP also boosted its revenue outlook, saying it expects an 8% sequential gain, which translates to $270.1 million. It had previously predicted a 3% to 7% revenue gain. Analysts currently expect $264 million in revenue for the quarter. Microchip Technology shares rose 86 cents, or +3.1%, in premarket trading Tuesday. The Bottom Line We have been recommending shares of MCHP since July 22, when the stock was trading at $25.88. The company has a 4.90% dividend yield, based on last night’s closing stock price of $27.84. Microchip Technology Inc. ( MCHP ) is a “recommended” dividend stock, holding a Dividend.com DARS™ Rating of 3.5 out of 5 stars. Be sure to visit our complete recommended list of the Best Dividend Stocks , as well as a detailed explanation of our ratings system here .