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STMicroelectronics NV (STM)

- NYSE
  • 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.
    • Chip ETFs: SMH, XSD, PSI, SOXL, USD, SOXS, SSG
    | 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%).
    • Chip ETFs: SMH, XSD, PSI, SOXL, USD, SOXS, SSG
    | 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
  • 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, 2:57 PM | Comment!
  • Thu, Apr. 30, 12:45 PM
    | Thu, Apr. 30, 12:45 PM | Comment!
  • Thu, Apr. 30, 9:19 AM
    | Thu, Apr. 30, 9:19 AM | 7 Comments
  • Wed, Apr. 29, 1:26 PM
    • European tech firms Nokia (NOK -2.5%), Alcatel-Lucent (ALU -4.4%), ARM (ARMH -2.8%), and STMicroelectronics (STM -2.6%) have sold off following broad declines for continental exchanges.
    • The U.K.'s FTSE 100, France's CAC 40, and Germany's Deutsche Borse have respectively fallen 1.2%, 2.6% and 3.2%, and the EURO STOXX 50 index has dropped 2.7%. Over in the U.S., the Nasdaq is down 0.9%, and the S&P 0.7%.
    • The selloff has come amid a 1.5% gain for the euro against the dollar, continuing a recent rebound. The euro/dollar exchange rate is back up to 1.11. It has also coincided with sharp increases in European debt yields.
    • Nokia reports earnings tomorrow morning, and merger partner Alcatel-Lucent (past deal coverage) on May 7. ARM rallied last week in response to a Q1 revenue beat driven by strong royalty growth.
    | Wed, Apr. 29, 1:26 PM | 11 Comments
  • Thu, Apr. 23, 12:20 PM
    • While the Nasdaq is up 0.3%, chip stocks are selling off (SOXX -1.8%) after Texas Instruments, Xilinx, and Qualcomm all provided soft calendar Q2 guidance. TI and Xilinx also missed Q1 sales estimates, while Qualcomm beat.
    • Decliners include Avago (AVGO -3.7%), Qorvo (QRVO -2.5%), Freescale (FSL -3%), STMicroelectronics (STM -3.6%), Atmel (ATML -2.3%), PMC-Sierra (PMCS -2.5%), Fairchild (FCS -2.2%), Cypress (CY -2.1%), Audience (ADNC -6.6%), IDT (IDTI -4.5%), Vishay (VSH -2.9%), AppliedMicro (AMCC -2.3%), and Cavium (CAVM -4.4%). NXP, ON Semi, Linear, Microchip, and Maxim remain lower after falling AH yesterday.
    • With the decliners including many microcontroller, analog/mixed-signal, and telecom equipment chipmakers, TI (TXN -7.3%) might be the biggest culprit: The analog/DSP giant blamed soft telecom equipment and consumer electronics demand for its numbers, with particular weakness in mobile infrastructure (a 2014 strong point) and PCs; auto and industrial demand was healthier.
    • On its CC (transcript), TI attributed the mobile weakness to delayed carrier capacity upgrades. This morning, mobile infrastructure giant Ericsson posted a Q1 miss blamed in part on weak North American 4G spending.
    • Likewise, Xilinx (XLNX -1.3%), which has strong 4G infrastructure exposure, stated on its CC (transcript) wireless sales were weaker than expected due to "continued softness in North America and a weakening in China LTE business." Wired infrastructure sales were in-line, and other markets outperformed.
    • Qualcomm largely blamed its guidance on the iPhone 6's share gains and a loss of chip share at Samsung, rather than industry demand issues. Altera, Freescale, Maxim, Microsemi, and Synaptics report after the close.
    • Chip ETFs: SMH, XSD, PSI, SOXL, USD, SOXS, SSG
    • 8 days ago: Chip stocks rally following Intel/Linear's earnings
    | Thu, Apr. 23, 12:20 PM | 1 Comment
  • Wed, Apr. 22, 12:51 PM
    • Craig-Hallum has launched coverage on STMicroelectronics (STM +2.8%) with a Buy rating and $13 target ahead of the chipmaker's April 30 Q1 report. Shares are close to a 52-week high of $10 - they also rallied yesterday.
    • Strong Galaxy S6 sales - STM is supplying the phone's touch controller, and might also be supplying (along with InvenSense) motion sensors - could act as a Q1/Q2 tailwind. Meanwhile, peers have reported strong Q1 industrial and auto chip sales.
    | Wed, Apr. 22, 12:51 PM | Comment!
  • Tue, Apr. 21, 3:27 PM
    • Today's notable tech gainers include Chinese online retailer Vipshop (VIPS +4.9%), European chipmaker STMicroelectronics (STM +5.1%), IP risk-protection services firm RPX (RPXC +4.1%), Wi-Fi hardware maker Aerohive (HIVE +4.8%), Indian ISP/data services firm Sify (SIFY +5.2%), and software outsourcing firm Luxoft (LXFT +3.9%). The Nasdaq is up 0.5%.
    • Notable decliners include 3 e-commerce-focused firms: Online women's/children's apparel seller Zulily (ZU -6.5%) e-commerce listing/monetization service provider ChannelAdvisor (ECOM -5.1%), and online coupon/promo code provider RetailMeNot (SALE -3.9%). Also off is ultracapacitor maker Maxwell (MXWL -6.1%).
    • Vipshop is once more near a high of $30.59. STMicro is closing in on a 52-week high of $10.00 ahead of its April 30 Q1 report. Possible helping Aerohive: The company has launched a new channel partner program and hired Riverbed/EMC vet Johnna Bowley to run it.
    • Maxwell is once more within a dollar of a 52-week low of $6.29; its Q1 report is due on Thursday. Zulily is slightly more than a dollar above a post-IPO low of $12.34. ChannelAdvisor reports on May 4, and RetailMeNot on May 5.
    • Previously covered: Cybersecurity stocks, chip equipment stocks, 3D Systems/Stratasys, ARM, ServiceSource, Ultra Clean, 58.com, Tremor Video, Voltari, Rambus, Sanmina
    | Tue, Apr. 21, 3:27 PM | 1 Comment
  • Thu, Mar. 26, 10:50 AM
    • The Philadelphia Semi Index (SOXX -1.8%) is now down 6% over the last two days. Today's losses come after NAND flash giant SanDisk issued a Q1 warning and withdrew its full-year guidance - price pressure, soft enterprise sales, and delayed product qualifications were all blamed.
    • Meanwhile, some are partly blaming yesterday's big selloff on cautious remarks from TSMC (has an estimated ~50% global foundry share) at a Credit Suisse conference. CS analyst Randy Abrams reports TSMC (NYSE:TSM) has observed "a slowdown in the past 4-5 weeks due to US$ strength impacting European and emerging market purchasing power," and that inventories "will be a few days above seasonal exiting 1Q15." Pac Crest downgraded TSMC two weeks ago on inventory concerns.
    • Following an Asian trip, Susquehanna's Chris Caso has argued there isn't too much to be alarmed about, though he admits forex could be an issue. "There’s mixed signals here and there. We weren’t picking up anything that was tremendously different across the supply chain. PCs were the weakest area. That’s really not a surprise."
    • RF chipmakers Skyworks (SWKS -4.6%) and Qorvo (QRVO -2.1%), among 2014's best performers, are again selling off; peer Avago is off only slightly. Also seeing further profit-taking are Ambarella (AMBA -3%), NXP (NXPI -3.6%), Freescale (FSL -2.8%), Cavium (CAVM -3.2%), and STMicroelectronics (STM -4.5%).
    • Among equipment makers, Axcelis (ACLS -2.9%), Aixtron (AIXG -3.6%), Veeco (VECO -3%), and Kulicke & Soffa (KLIC -2.5%) are declining. A selloff in European equities could be affecting Aixtron, NXP/Freescale, and STMicro.
    • Chip ETFs: SMH, XSD, PSI, SOXL, USD, SOXS, SSG
    • Update: Credit Suisse, Goldman, and Deutsche have each offered thoughts on the chip selloff.
    | Thu, Mar. 26, 10:50 AM | 3 Comments
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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