Microchip Technology Inc. (NASDAQ: MCHP) in the fourth quarter 2017 has posted better than expected results and has given an upbeat outlook for the current quarter, sending its shares rallying in aftermarket trading. The stock rose over 4.9% in the after-hours market on May 9th, 2017 (as of 7:59PM EDT ; Source: Google finance).

Microchip Technology in the fourth quarter 2017 has reported the adjusted earnings per share of $1.16, beating the analysts’ estimates for the adjusted earnings per share of $1.06. The company had reported the adjusted revenue growth of 61.9 percent to $902.7 million in the fourth quarter 2017, beating the analysts’ estimates for revenue of $891.14 million.

Additionally, Microchip Technology in the fourth quarter has issued $2.645 billion in convertible bonds, has paid $1.683 billion of borrowings under its revolving line of credit, and extinguished $431.3 million of 2037 convertible bonds in a financially accretive transaction. Microchip Technology has released the GigEpack in the Q4, which is a comprehensive portfolio of advanced Gigabit Ethernet products. The latest PIC 18F MCU, the “K42,” was announced which features a versatile array of Core Independent Peripherals (CIPs) to simplify complex designs. MCHP has furthered expanded its family of tinyAVR MCUs with the new ATtiny1617 devices.

In addition, MCHPMicrochip Technology has declared a quarterly cash dividend on its common stock of 36.15 cents per share. The quarterly dividend is payable on June 6th, 2017 to stockholders of record on May 23rd, 2017.

Microchip Technology expects the first quarter earnings per share in the range of $1.17 to $1.27, well ahead of the analysts’ current estimate of $1.11. The first quarter revenues are expected to be between $920.7 and $965.9 million, also significantly higher than analysts’ view of $913.05 million. Further, the company forecasts net income to be in the range of $143.40 million to $156.50 million and projects the adjusted net income to be in the range of $282.40 million to $309.30 million. The company expects operating income to grow in the range of 20.30 percent to 21.30 percent and expects adjusted operating income to grow in the range of 36 percent to 37 percent.

Microchip Technology stock has risen 59.44% in the last one year (source: Google Finance). According to tipranks.com, MCHP has an average price target of $89.75, which is a further upside of 17.40%.