Thu, Apr. 30, 2:57 PM
- In addition to missing Q1 estimates, STMicroelectronics (NYSE:STM) has guided for Q2 revenue to be up 3.5% Q/Q (+/- 3.5%). That implies a revenue midpoint of $1.77B, below a $1.82B consensus.
- Q1 sales were hurt by a 16% Y/Y drop in analog/MEMS revenue to $255M; iPhone 6 share loss to InvenSense was a factor, as was a $15M one-time gain in the year-ago quarter. Automotive chip revenue fell 3% to $434M, and industrial & power discrete revenue (hurt by soft PC sales) 3% to $430M.
- Digital power group (set-top/cable modem chips and legacy ST-Ericsson products) sales fell 27% to $207M (possible share loss to Broadcom). Microcontrollers (MCUs), memory, and secure MCUs were a strong point, rising 8% to $374M; Samsung smartphone design wins for the STM32 flash microcontroller line provided a boost.
- Shares had already already sold off going into to earnings, thanks in part to weak reports from peers. They're down 20% from an April 22 close of $9.94.
- Q1 results, PR
Thu, Apr. 30, 1:38 AM| Comment!
Wed, Jan. 28, 4:54 AM| Comment!
Tue, Jan. 27, 5:30 PM| 1 Comment
Oct. 29, 2014, 1:19 PM
- In addition to missing Q3 revenue estimates (while beating on EPS), STMicroelectronics (NYSE:STM) is guiding for Q4 revenue to be down 3.5% Q/Q (+/- 350 bps). That implies a range of $1.76B-$1.89B, well below a $2.01B consensus.
- The company witnessed a "softening of demand towards the end of [Q3], specifically in the mass market and in microcontrollers." Like many other chipmakers, STM was hammered on Oct. 10 after microcontroller vendor Microchip warned.
- All product groups are expected to decline Q/Q except for the Analog, MEMS, and Sensors group, which is benefiting from "key product ramp-ups, such as analog microphones, new 6-axis gyroscopes and touch controllers."
- STM plans to merge its Digital Convergence Group (makes TV/set-top SOCs, among other things) with its Imaging, Bi-CMOS, and Silicon Photonics Group into a new Digital Product Group. The reorg and other initiatives are expected to yield $100M/year in cost savings.
- Between them, the merging units had Q3 revenue of $286M (15% of total revenue). STM appears to be losing set-top chip share to Broadcom.
- Gross margin rose to 34.3% from 34% in Q2 and 32.4% a year ago. Q4 GM guidance is at 33.8% (+/- 200 bps). $93M was spent on buybacks.
- Citi's upgrade wasn't well-timed.
- Q3 results, PR
Oct. 29, 2014, 5:57 AM| Comment!
Oct. 28, 2014, 5:30 PM
- ACCO, ADP, AIT, ALKS, ALLY, AMED, ARW, AUO, AVX, BAH, BDC, CCJ, CFR, CKSW, CMC, COT, CTCM, DXYN, ETN, EVER, EXC, GHM, GRMN, GT, H, HES, HSY, IACI, ISSI, JLL, LFUS, MHFI, MRGE, MTH, NVMI, OMG, PAG, PB, PSX, PSXP, PX, RES, RL, ROL, RYAM, SEE, SKYW, SO, SODA, SPW, SPWR, STM, TEL, TFX, UAM, UBSI, VLY, WEC, WLP, WM, XRAY
Jul. 23, 2014, 3:59 PM
- In addition missing Q2 revenue estimates (while beating on EPS), STMicroelectronics (STM) has guided for Q3 revenue to grow 3% Q/Q (+/- 3.5%). That implies revenue of $1.92B at the midpoint, below a $2B consensus.
- Contributing to the EPS beat: Q2 gross margin was 34%, +120 bps Q/Q and Y/Y, and 40 bps above STM's guidance midpoint. GM is expected to come in at 34.4% (+/- 2%) in Q3.
- Automotive IC sales grew 11% Y/Y in Q2 to $463M, but analog/MEMS sales fell 19% to $264M. Industrial & power discrete sales rose 2% to $475M, and microcontroller, memory, & secure MCU sales rose 13% to $396M. Digital convergence group sales tumbled 51% to $184M thanks to the ST-Ericsson wind-down/asset transfer.
- Plenty of other chip stocks are also selling off, with some help from Xilinx and Juniper.
- Q2 results, PR
Jul. 23, 2014, 3:45 AM| Comment!
Jul. 22, 2014, 5:30 PM
Apr. 28, 2014, 5:35 PM
- STMicroelectronics (STM) expects Q2 revenue to be up 2% Q/Q (+/- 3.5%). The consensus is for revenue to grow 5% Q/Q to $1.93B.
- The chipmaker has also announced it's promoting Jean-Marc Chery, the GM of its embedded processing solutions (EPS) unit, to the new position of COO. Chery will still be in charge of EPS, as well as STMicro's central manufacturing ops.
- Q1 gross margin was 32.8%, -10 bps Q/Q and +150 bps Y/Y, and slightly above a guidance midpoint of 32.4%. STMicro expects a 33.6% GM (+/- 2%) in Q2.
- Though total revenue growth was -9%, it would've been +0.7% if not for legacy sales related to the discontinued ST-Ericsson JV. Q2's ST-Ericsson sales are expected to be less than half a Q1 level of $63M.
- A $0.10/share quarterly dividend has been proposed for Q2 and Q3 (on par with STMicro's current dividend).
- Q1 results, PR
Apr. 28, 2014, 4:51 PM| Comment!
Apr. 27, 2014, 5:35 PM
Feb. 26, 2014, 11:24 AM
- Chip stocks are outperforming (SOXX +1.1%) after Avago (AVGO +5.1%) posted an FQ1 beat and strong margin numbers (albeit while guiding light, as many expected), and STMicroelectronics (STM +3.9%) exec Paul Grimme states his company's European sales are stabilizing, with Germany leading the way.
- Notable winners: AMBA +5.4%. AMCC +5.2%. CRUS +3.3%. SWKS +3%. QUIK +4.1%. INVN +2.7%. RFMD +3.5%. TQNT +3%. SIMO +2.7%. CAVM +3.6%. Nearly all of the aforementioned names have strong mobile and/or telecom equipment exposure.
- RBC has hiked its Avago PT to $66 from $64, and says the chipmaker remains its "top play on China and global LTE deployments." With LSI in tow, the firm thinks FY15 (ends Oct. '15) EPS will top $5.
- Morgan Stanley ($68 PT) is confident Avago can raise LSI's op. margin to 30% from 17% over the next few years, much as the company has doubled its own op. margin to 30% post-LBO.
- Chip ETFs: SMH, XSD, PSI, SOXL, USD, SOXS, SSG
Jan. 27, 2014, 7:05 PM
- Silicon Motion (SIMO) expects Q1 revenue to be flat to down 10% Q/Q vs.a consensus for a 2% decline. However, the company also expects 2014 revenue to be up 5%-15% Y/Y vs. a consensus for 5% growth. Shares +4.8% AH. (Q4 results, PR)
- STMicroelectronics (STM) expects Q1 revenue to decline 9.5% Q/Q (+/- 3.5%); that's worse than a consensus for a 7% drop. Shares unchanged AH for now. (Q4 results, PR)
- Sanmina (SANM) expects FQ2 revenue of $1.425B-$1.475B and EPS of $0.36-$0.42 vs. a consensus of $1.45B and $0.37. Shares +7.1% AH. (FQ1 results, PR)
Jan. 27, 2014, 4:52 PM| Comment!
STM vs. ETF Alternatives
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.
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