Can Microchip (MCHP) Surprise this Earnings Season?

Leading semiconductor manufacturer Microchip Technology Inc. (MCHP – Analyst Report) is scheduled to report its fourth-quarter fiscal 2014 results after the closing bell on May 6. In the last reported quarter, Microchip’s adjusted earnings exceeded the Zacks Consensus Estimate by 7 cents. Let’s see how things are shaping up for this announcement.

Growth Factors in the Fourth Quarter

Microchip recently completed the acquisition of integrated circuits (IC) manufacturer Supertex Inc. for a cash consideration of $33 per share. This strategic purchase will enable Microchip to expand in the Medical, Industrial and Lighting verticals.

Microchip is also expected to leverage Supertex’ strong domain knowledge in high voltage analog and mixed signal technologies to achieve significant operating synergies and create cross-selling opportunities. Consequently, the acquisition is anticipated to be accretive to Microchip’s non-GAAP earnings per share.

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