- From $11 prior, analyst Anthony Stoss notes capital expenditures guided at approximately $1B-$1.1B for 2017, compared to approximately $607M in 2016, as a likely result of an indicated and thought to be Apple related, H2 2017 revenue ramp.
- Considers STMicroelectronics set up favorably given expected substantial volume of Apple's forthcoming 2017 iPhone upgrade, and notes potential to increase present ToF content from around $2 ASP/phone to $4 ASP/phone should an additional sensor be utilized in support of 3D sensing and augmented reality capabilities.
- Also notes belief of a Samsung Galaxy S8 win for ToF.
- Increases 2017 revenue outlook to $7.845B (from $7.47B; consensus $7.33B) and EPS to $0.70 (from $0.63; consensus $0.53).
- STMicroelectronics (NYSE:STM) $12.88, +5.72%.
- Earlier (January 26, 2017): STMicroelectronics +5.5%; Q4 2016 commentary on newly-won program indicates H2 2017 revenue ramp