Written by StockNews.com

Microchip Technology Inc. (NASDAQ: MCHP) late Tuesday posted market-beating fiscal fourth quarter earnings results and offered an upbeat outlook for the current quarter, sending its shares rallying in aftermarket trading.

The Chandler, AZ-based semiconductor products maker reported Q4:

• earnings per share (EPS) of $1.16, which was $0.10 better than the Wall Street consensus estimate of $1.06 [while]
• revenues rose 61.9% from last year to $902.7 million, also beating out analysts’ view for $891.14 million.

Looking ahead, MCHP:

• forecast Q1 EPS of $1.17 to $1.27, well ahead of Wall Street’s current estimate of $1.11 [while]
• Q1 revenues are seen between $920.7 and $965.9 million, also significantly higher than analysts’ view of $913.05 million.

The company commented via press release:

“Non-GAAP earnings per share was an all-time record and was 10 cents per share better than the mid-point of our February 28, 2017 guidance, and up 64.7% from the March quarter of a year ago due to improving sales, gross margin percentage, operating expense leverage and the successful execution of our core business as well as accretion from our acquisitions.

GAAP earnings per share for the March quarter was heavily impacted by acquisition-related expenses and hence, not meaningfully comparable to the March quarter a year ago.”

Microchip Technology Inc. shares jumped nearly 5% in after-hours trading Tuesday. Year-to-date, MCHP had already gained 19.78% prior to today’s report, versus a 7.58% rise in the benchmark S&P 500 index during the same period.

MCHP currently has a StockNews.com POWR Rating of A (Strong Buy), and is ranked #11 of 93 stocks in the Semiconductor & Wireless Chip category.