What Happened:

Shares of analog chipmaker Microchip Technology (NASDAQ:MCHP) fell 7.29% in the after-market session after the company reported fourth quarter results that narrowly beat analysts' revenue estimates. EPS also beat and revenue guidance for the next quarter came in above Consensus. However, free cash flow fell short, and inventory levels rose. Management also provided mixed macro commentary, adding to the uncertainty around the near-term outlook.

What is the market telling us:

Microchip Technology's shares are quite volatile and over the last year have had 13 moves greater than 5%. In context of that, today's move is indicating the market considers this news meaningful but not something that would fundamentally change its perception of the business.

Microchip Technology is up 8.32% since the beginning of the year, but at $74.90 per share it is still trading 13.4% below its 52-week high of $86.52 from February 2023. Investors who bought $1,000 worth of Microchip Technology's shares 5 years ago would now be looking at an investment worth $1,690.

Is now the time to buy Microchip Technology? Access our full analysis of the earnings results here, it's free.