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STMicroelectronics NV (STM)

  • Thu, Oct. 29, 3:58 PM
    • On his company's Q3 earnings call, STMicroelectronics (STM -5.7%) CEO Carlo Bozotti denied the French/Italian chipmaker is interested in acquiring analog/power management IC vendor Fairchild Semi (FCS -5.7%). Bloomberg reported on Tuesday STMicro is weighing a bid for Fairchild, two weeks after having reported Infineon and ON Semi have held talks with the company.
    • Both STMicro and Fairchild are down sharply, the former due to its soft Q4 guidance. Many other chip stocks are in the same boat.
    | Thu, Oct. 29, 3:58 PM | Comment!
  • Thu, Oct. 29, 12:29 PM
    • Down on Monday following Dialog Semi's Q3 report and up yesterday in the wake of Apple's results/guidance, chip stocks are selling off again (SOXX -2.5%) after leading microcontroller vendor NXP (NXPI -18.2%) posted mixed Q3 results and (more importantly) guided for Q4 revenue to be down by a "low to upper-teens" % Q/Q. The Nasdaq is down 0.3%.
    • Also: 1) NXP rival and fellow European chipmaker STMicroelectronics (STM -5.8%) slightly missed Q3 revenue estimates and has guided for Q4 revenue to be down 6% (+/- 3.5%) Q/Q. 2) Network processor vendor Cavium (CAVM -5%) issued light Q4 guidance, while blaming a distribution model change at its biggest data center customer. 3) Microcontroller maker Atmel (ATML -2.4%, set to be acquired by Dialog) missed Q3 revenue estimates and guided for Q4 revenue of $266M-$286M, below a $296.1M consensus.
    • On the bright side, Apple-dependent Cirrus Logic (CRUS -5.7%) beat FQ2 EPS estimates (revenue was in-line) and provided solid FQ3 guidance, and fellow Apple/Samsung supplier InvenSense (INVN +14.3%) beat FQ2 estimates and issued in-line FQ3 guidance. Cirrus is nonetheless selling off; the earnings call (transcript) was generally upbeat, with management talking up FY16/FY17 growth opportunities related to smart codec and boosted amplifier sales.
    • NXP merger partner Freescale (FSL -15.4%) is naturally seeing big losses. Other decliners include RF chipmakers Skyworks (SWKS -3.1%), Avago (AVGO -6%), and Qorvo (QRVO -2.6%), analog/mixed-signal chipmakers Texas Instruments (TXN -3%), ON Semi (ON -5.9%), MagnaChip (MX -6.8%), Fairchild (FCS -4.3%), Maxim (MXIM -3.1%), and IDT (IDTI -5.2%), and smart TV SoC vendor/STMicro rival Sigma Designs (SIGM -3.2%).
    • Like NXP, Cirrus, and InvenSense, Skyworks, Avago, Qorvo, TI, and Fairchild are Apple suppliers. Fairchild and Maxim have recently benefited from M&A reports (I, II).
    • Both NXP and STMicro reported seeing conditions deteriorate as Q3 progressed. NXP added lower-than-expected chip sell-through led to higher channel inventories, and STMicro stated "lower consumer spending in China is impacting the dynamics of the distribution channel in the region and the industry more globally, particularly in automotive." NXP has added 20M shares to its buyback in an attempt to soften the blow.
    | Thu, Oct. 29, 12:29 PM | 8 Comments
  • Thu, Oct. 29, 9:40 AM
    • In addition to missing Q3 revenue estimates (while beating on EPS), STMicroelectronics (NYSE:STM) is guiding for Q4 revenue to be down 6% Q/Q (+/- 3.5%). That implies revenue of $1.59B-$1.72B, below a $1.81B consensus.
    • Echoing remarks rival/fellow European chipmaker NXP made in its Q3 report yesterday evening, STMicro says it experienced "softer market demand as we progressed through the quarter." It adds a manufacturing issue at a sub-contractor affected microphone sales, and that "lower consumer spending in China is impacting the dynamics of the distribution channel in the region and the industry more globally, particularly in automotive."
    • Analog/MEMS, automotive, industrial & power discrete, and digital product group (DPG) revenue all fell Y/Y. Microcontroller, memory & secure MCU revenue rose. STMicro says it's "making progress in narrowing the options" for DPG (previous), and plans to announce a final decision by early 2016.
    • Q3 results, PR
    • Two days ago: STMicro reportedly mulling bid for Fairchild
    • Three days ago: French/Italian governments reportedly pressuring STMicro to cut dividend
    | Thu, Oct. 29, 9:40 AM | Comment!
  • Thu, Oct. 29, 9:13 AM
    | Thu, Oct. 29, 9:13 AM | Comment!
  • Tue, Oct. 27, 11:34 AM
    • Bloomberg reports STMicroelectronics (STM -2.1%) is weighing a bid for U.s-based analog/power management IC vendor Fairchild Semi (FCS +4.8%). Sources caution STMicro might decide against such a move in favor of focusing on bottom-line improvement.
    • Two weeks ago, Fairchild was rumored to be talking with ON Semi and Infineon about potential deals. Yesterday, Bloomberg reported the French and Italian governments want STMicro to cut its dividend in order to have more flexibility to up its R&D spend.
    | Tue, Oct. 27, 11:34 AM | 3 Comments
  • Mon, Oct. 26, 2:20 PM
    • Bloomberg reports the French and Italian governments, which collectively own 27.5% of STMicroelectronics (NYSE:STM), want the chipmaker to cut its dividend to give it more flexibility to up its R&D spend.
    • STMicro currently sports a 5.1% yield, well above that of most dividend-paying chip stocks. Meanwhile, the company is expected by the Street to see revenue drop 4.5% in 2015. Sales have been pressured by the ST-Ericsson JV wind-down, weak PC sales, set-top IC competition from Broadcom, and microcontroller competition from a variety of rivals.
    • Shares have fallen towards $7.50. In addition to Bloomberg's report, a weak Q3 report from fellow European chipmaker Dialog Semi could be weighing. STMicro's Q3 results arrive on Thursday morning.
    | Mon, Oct. 26, 2:20 PM | Comment!
  • Thu, Oct. 22, 12:24 PM
    • The Philadelphia Semi Index (SOXX +3%) has risen above $90 for the first time since July on a day the Nasdaq is up 1.5%. Helping out: Texas Instruments (TXN +10.4%) soundly beat Q3 estimates, reported positive growth for its analog and embedded processing (DSP/microcontroller) units in spite of a customer inventory correction, and (with the help of iPhone content gains) provided mostly above-consensus Q4 guidance.
    • Meanwhile, Cypress Semi (up 4.1%) is rallying in spite of posting mixed Q3 results and issuing light Q4 guidance. A new $450M buyback is helping.
    • TI/Cypress microcontroller peers NXP (NXPI +4.2%), Freescale (FSL +3.5%), STMicroelectronics (STM +2.5%), and Microchip (MCHP +2.9%) are among the gainers. As are TI analog/mixed-signal peers ON Semi (ON +5%), Intersil (ISIL +3.2%), IDT (IDTI +3.6%), Monolithic (MPWR +3.3%), and Silicon Labs (SLAB +2.6%).
    • Other notable gainers include InvenSense (INVN +2.6%), Nvidia (NVDA +3.5%), Cavium (CAVM +4.4%), Knowles (KN +3.6%), and Lattice Semi (LSCC +7%).
    • On its earnings call (transcript), TI mentioned automotive chip demand (boosted by growing chip content in various systems) was strong. Industrial sales were roughly flat (better than expected), and personal electronics benefited from "demand from one customer" (likely Apple). Wireless infrastructure fell 30% Y/Y (Chinese weakness), but rose Q/Q.
    • Chip stocks also outperformed yesterday after Western Digital announced it's buying SanDisk, Lam Research announced it's buying KLA-Tencor, and CPU core giant ARM (ARMH +2.7%) beat Q3 revenue estimates (EPS slightly missed) with the help of a 20% Y/Y increase in ARM chip shipments to 3.6B, and stated it expects 2015 revenue to be in-line with market expectations.
    | Thu, Oct. 22, 12:24 PM | Comment!
  • Wed, Sep. 9, 12:27 PM
    • STMicroelectronics (NYSE:STM) is selling off in the wake of CFO Carlo Ferro's Tuesday afternoon presentation (webcast) at a Citi conference. Shares rose 4.6% yesterday, aided by a big chip stock rally that followed Microchip's calendar Q3 guidance revision.
    • In other news, STMicro has launched new SoCs for low-cost cable, satellite, and IPTV set-tops. The chips run on ARM's CPU and GPU cores, and support HEVC video codecs. STMicro has said it's exploring options for Digital Product Group, as it contends with weak image sensor demand and set-top share losses to Broadcom.
    | Wed, Sep. 9, 12:27 PM | 1 Comment
  • Thu, Jul. 23, 9:15 AM
    | Thu, Jul. 23, 9:15 AM | 9 Comments
  • Wed, Jul. 22, 11:11 AM
    • The Philadelphia Semi Index (SOXX -3.2%) has fallen to its lowest levels since February after Apple, ARM, and Linear Technology posted their calendar Q2 reports yesterday afternoon.
    • Apple (down 4.8%) beat estimates, but offered soft guidance and reported slightly below-consensus iPhone sales. ARM (down 3.8%) reported roughly in-line Q2 results and a 26% Y/Y increase in ARM-based chip shipments, while stating it expects 2015 results to be in-line with expectations.
    • Linear (down 7.8%) missed FQ4 estimates and provided weak FQ1 guidance. Notably, the analog/mixed-signal chipmaker added it saw bookings slow "considerably" towards the end of Q2, with industrial and PC demand particularly weak. Bookings have improved in July, but Linear is still "preparing for a difficult [Q3]." The company expresses optimism the downturn will be short.
    • Apple suppliers are seeing big losses (previous). As are Linear peers Texas Instruments (TXN -3.7%), ON Semi (ON -5.1%), Maxim (MXIM -3.5%), IDT (IDTI -6.5%, Apple Watch supplier), InPhi (IPHI -4%), Exar (EXAR -4.2%), and Analog Devices (downgraded by Drexel Hamilton).
    • Other decliners include Micron (MU -4.2%, also an Apple supplier), Synaptics (SYNA -6.4%, ditto), STMicroelectronics (STM -6.2%, downgraded by Citi), Freescale (FSL -4.8%, following merger partner/Apple supplier NXP lower), Microchip (MCHP -4.6%), Cypress (CY -4.3%), Lattice (LSCC -3.9%), and Silicon Motion (SIMO -4.4%).
    • Qualcomm, TI, Cirrus Logic, SanDisk, and Xilinx report this afternoon.
    | Wed, Jul. 22, 11:11 AM | 3 Comments
  • Mon, Jul. 13, 10:35 AM
    • Believing Q2 and Q3 estimates are at risk, JPMorgan has downgraded STMicroelectronics (NYSE:STM) to Underweight ahead of its July 23 Q2 report, and cut its target by €0.50 to €6.50 ($7.17).
    • The firm cites weak PC sales and disappointing smartphone demand. It also thinks a potential sale or closure of STMicro's money-losing Digital Product Group (DPG - STMicro has said it's exploring options) is priced in.
    • Shares now trade for just 0.9x a 2016 sales consensus of $7.63B.
    | Mon, Jul. 13, 10:35 AM | 1 Comment
  • Fri, Jul. 10, 11:14 AM
    • The Euro Stoxx 50 index is up 2.8% after Greece submitted a bailout proposal that met a number of the demands set by creditors for austerity measures and legal reforms. The Nasdaq is up 1.3%, and the S&P 500 1.1%.
    • In addition to Nokia and Alcatel-Lucent (previously covered), major European tech gainers include SAP (SAP +3.7%), Ericsson (ERIC +3.6%), ASML (ASML +4%), and STMicroelectronics (STM +4.7%).
    • Some SAP news: 1) CEO Bill McDermott has been discharged from a hospital after suffering an accident at his relatives' home. 2) A U.S. federal appeals court has upheld the cancellation of a patent owned by private Versata that led to a $391M infringement ruling against SAP.
    • ASML reports on July 15, Ericsson on July 17, SAP on July 21, and STMicro on July 23.
    | Fri, Jul. 10, 11:14 AM | 1 Comment
  • Mon, Jun. 22, 9:08 AM
    • Barclays has upgraded STMicroelectronics (NYSE:STM) to Equal Weight. Shares have risen to $8.30 premarket.
    • The European chipmaker has underperformed the semi industry by a large margin over the last years, largely moving sideways as other chip stocks from both a tech rally and an industry consolidation wave. STMicro trades for just 0.85x a 2016 sales consensus of $7.63B, after backing out $512M in net cash.
    | Mon, Jun. 22, 9:08 AM | 1 Comment
  • Wed, May 27, 3:00 PM
    • Chip stocks are posting outsized gains (SOXX +4%) amid a 1.3% increase for the Nasdaq after the WSJ reported Avago and Broadcom are in advanced merger talks, sparking hopes for further M&A.
    • A Broadcom/Avago deal would be worth ~$67B at current valuations, easily making it the largest in the chip industry's breathless consolidation wave. It would also touch markets ranging from smartphones to set-tops to servers to switches/routers.
    • Notable gainers include Avago RF chip peers Skyworks (SWKS +4.3%), Qorvo (QRVO +3.2%), and Anadigics (ANAD +4.9%). Others include Micron (MU +3.8%), SanDisk (SNDK +4.3%), NXP (NXPI +3.5%), Silicon Motion (SIMO +8.3%), Cirrus Logic (CRUS +4.8%), STMicroelectronics, (STM +3.4%), Synaptics (SYNA +3.4%), Atmel (ATML +2.8%), Cavium (CAVM +4.5%), Intersil (ISIL +4.6%), Semtech (SMTC +3.9%), ON Semi (ON +3.8%), Microsemi (MSCC +4.4%), and IDT (IDTI +4.2%).
    • Non-chipmakers tied to the industry are also doing well. Standouts include ARM (ARMH +4.4%), Amkor (AMKR +4.6%), ASML (ASML +3.1%), and Rambus (RMBS +3.3%).
    | Wed, May 27, 3:00 PM | 41 Comments
  • Tue, May 12, 10:05 AM
    • STMicroelectronics (NYSE:STM) has used its 2015 investor day to state it's exploring options to cut losses at its Digital Product Group (DPG), a division that makes set-top ICs, image sensors, and embedded processors (among other products). "This problem needs to be fixed and we will fix it," says CEO Carlo Bozotti.
    • DPG's revenue fell 27% Y/Y in Q1 to $207M (12% of total revenue); STM blamed a drop legacy sales related to the shuttered ST-Ericsson JV, along with declining image sensor and low-end set-top IC sales. OmniVision and Sony provide tough competition in the image sensor; Broadcom is a fierce rival in the set-top IC space.
    • DPG's performance led STMicro's broader Embedded Processing Solutions (EPS) segment (34% of total revenue, also covers microcontrollers and memory chips) to report a Q1 op. loss of $64M (improved from -$82M a year earlier). STMicro stated on its Q1 CC (transcript) it's working to cut costs within EPS, primarily via DPG.
    • The European chipmaker has also guided today for Q2 revenue and gross margin to hit the midpoints of the guidance ranges set in its April 30 Q1 report. Shares are recovering a portion of their big post-earnings losses.
    | Tue, May 12, 10:05 AM | Comment!
  • Tue, May 12, 9:16 AM
    | Tue, May 12, 9:16 AM | 3 Comments
Company Description
STMicroelectronics NV designs, develops, manufactures and markets semiconductor products used in different microelectronic applications, including automotive products, computer peripherals, telecommunications systems, consumer products, & control systems.
Sector: Technology
Country: Italy