STM
STMicroelectronics (NYSE: STM) forecast Q3 revenue slightly below estimates, but said chip demand from...
Article Summary
HOLD- STMicroelectronics (NYSE: STM) forecast Q3 revenue slightly below estimates, but said chip demand from automotive, AI-related, data-centre optical and consumer electronics markets was recovering, with strong bookings across all end markets.
- The company's chips are used in electric vehicles, industrial equipment, smartphones and data-center applications, and has been seeking to recover from a prolonged downturn in demand across automotive and industrial markets.
- STMicro saw improved visibility and signs of tight supply in several product categories during the quarter, with the CEO noting improved visibility in product categories such as automotive, industrial and AI.
- Analysts had expected revenue of $3.70 billion, plus or minus 3.5%, compared with an LSEG average estimate of $2.72 billion, according to LSE data.
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Growth Stock Scoring Breakdown
| METRIC | VALUE | WEIGHT | ANALYSIS |
|---|---|---|---|
| Sales Growth TTM ? | 0.8% | 25% | 20.0 ptsMinimal (0.8%) - Very weak |
| EPS Growth Next 5Y ? | 95.5% | 25% | 100.0 ptsExceptional (95.5%) - Very high expectations |
| Target Price Upside ? | 21.6% | 20% | 70.0 ptsGood Upside (21.6%) - Target: $79.99 vs Current: $65.77 |
| Gross Margin % ? | 33.8% | 15% | 40.0 ptsModerate (33.8%) - Adequate margins |
| Drawdown from 52-Wk High ? | -19.2% | 15% | 40.0 ptsMild Pullback (-19.2%) - Light entry opportunity |
Disclaimer: This rating is for informational purposes only and is not financial advice.
All data sourced from Finviz.
Always conduct your own research and consult with a financial advisor before making investment decisions.
Past performance does not guarantee future results.
About STM
- STMicroelectronics N.V., together with its subsidiaries, designs, develops, manufactures, and sells semiconductor products in Europe, the Middle East, Africa, the Americas, and the Asia Pacific.
- The company operates through Analog products, MEMS and Sensors Group (AM&S); Power and Discrete products (P&D); Embedded Processing (“EMP”); and RF Products (D&RF) segments.
- It offers industrial application-specific integrated circuits (ASICs) and application-specific standard products (ASSPs); power management solutions; custom analog ICs, wireless charging solutions; galvanic isolated gate and LED drivers; converters, transistors, intelligent power switches, clocks and timers, comparators, and current-sense amplifiers; micro-electro-mechanical systems (MEMS) sensors, including accelerometers, gyroscopes, magnetic sensors, pressure, temperature, presence detection, biosensors, machine learning, and edge AI processing smart sensors, as well as thermal and piezoelectric actuators; and optical sensing solutions.
- The company also provides silicon MOSFETs, SiC MOSFETs, IGBTs, thyristors, rectifiers, and power modules and bipolar transistors; microcontrollers, and automotive microcontrollers and secured; radio frequency (RF) communications and ASICs; car infotainment products; ultra-wide band and radar systems; and Connected Security Products; and automotive driver assistance systems.
- It serves automotive, industrial, personal electronics and communications equipment, and computers and peripherals markets.
- STMicroelectronics N.V. was incorporated in 1987 and is headquartered in Schiphol, the Netherlands.