PREVIEW: Microchip stock rises ahead of earnings

Microchip Technology's MCHP.O shares advancing 3.6% on Thurs ahead of qtrly results after the bell, as investors focus on automotive market challenges and inventory levels

Analysts expect qtrly rev down 27% to $962.8 mln, with adjusted EPS seen at $0.11 vs $0.57 yr-ago, per LSEG, highlighting continued weakness in automotive demand

MCHP stock recently traded at 35 times expected earnings, suggesting it might be overvalued compared to its avg forward PE of 19 over past five years, per LSEG data

The co's stock has dipped about 14% YTD, compared to a 7% fall in Nasdaq .IXIC

Stock is about 51% below its 52-week intraday high of $100.57 reached on May 24, 2024

In past 30 days, one out of 25 analysts raised EPS estimates for qtr, while none revised downwards