Microchip back Q3 EPS view $1.54-$1.56, consensus $1.58

Backs Q3 revenue view $2.14B-$2.18B, consensus $2.19B. Microchip Technology reiterated its quarterly guidance initially issued on November 3. Microchip expects consolidated net sales for the December quarter to be $2.135 billion to $2.177 billion, which would result in sequential growth of between 3.0% and 5.0%, or 22.7% year-over-year growth, at the mid-point of the guidance range. The company also reaffirms its expectations for sequential revenue growth for the March 2023 quarter. "We expect to deliver our 9th consecutive quarter of record revenue in the December 2022 quarter. Our backlog for the quarter remains strong, our carefully curated end markets remain resilient, and while we see incremental supply chain improvements, several technology corridors remain constrained," said Ganesh Moorthy, Microchip’s CEO. "As we execute our Microchip 3.0 strategy, we believe that our relentless focus on organic growth opportunities through Total Systems Solutions and key market megatrends are positioning us as one of the most diversified, defensible, high-growth, high-margin, high cash-generating businesses in the semiconductor industry."