Analysts on Wall Street project that Microchip Technology $(MCHP)$ will announce quarterly earnings of $0.10 per share in its forthcoming report, representing a decline of 82.5% year over year. Revenues are projected to reach $961.07 million, declining 27.5% from the same quarter last year.

The current level reflects a downward revision of 2.3% in the consensus EPS estimate for the quarter over the past 30 days. This demonstrates how the analysts covering the stock have collectively reappraised their initial projections over this period.

Ahead of a company's earnings disclosure, it is crucial to give due consideration to changes in earnings estimates. These revisions serve as a noteworthy factor in predicting potential investor reactions to the stock. Numerous empirical studies consistently demonstrate a strong relationship between trends in earnings estimate revision and the short-term price performance of a stock.

While investors typically rely on consensus earnings and revenue estimates to gauge how the business may have fared during the quarter, examining analysts' projections for some of the company's key metrics often helps gain a deeper insight.

That said, let's delve into the average estimates of some Microchip Tech metrics that Wall Street analysts commonly model and monitor.

The consensus among analysts is that 'Net Sales- Mixed-signal Microcontrollers' will reach $500.65 million. The estimate indicates a year-over-year change of -28%.

Analysts expect 'Net Sales- Other' to come in at $210.26 million. The estimate points to a change of -30.2% from the year-ago quarter.

The average prediction of analysts places 'Net Sales- Analog' at $250.64 million. The estimate points to a change of -23.9% from the year-ago quarter.

View all Key Company Metrics for Microchip Tech here>>>

Shares of Microchip Tech have demonstrated returns of +32.3% over the past month compared to the Zacks S&P 500 composite's +0.4% change. With a Zacks Rank #3 (Hold), MCHP is expected to mirror the overall market performance in the near future. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

Microchip Technology Incorporated (MCHP) : Free Stock Analysis Report

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research