A Look at STMicroelectronics's Upcoming Earnings Report
STMicroelectronics (NYSE:STM) is preparing to release its quarterly earnings on Thursday, 2025-04-24. Here's a brief overview of what investors should keep in mind before the announcement.
Analysts expect STMicroelectronics to report an earnings per share (EPS) of $0.18.
STMicroelectronics bulls will hope to hear the company announce they've not only beaten that estimate, but also to provide positive guidance, or forecasted growth, for the next quarter.
New investors should note that it is sometimes not an earnings beat or miss that most affects the price of a stock, but the guidance (or forecast).
Earnings Track Record
Last quarter the company beat EPS by $0.02, which was followed by a 0.31% drop in the share price the next day.
Here's a look at STMicroelectronics's past performance and the resulting price change:
| Quarter | Q4 2024 | Q3 2024 | Q2 2024 | Q1 2024 |
|---|---|---|---|---|
| EPS Estimate | 0.35 | 0.33 | 0.36 | 0.59 |
| EPS Actual | 0.37 | 0.37 | 0.38 | 0.54 |
| Price Change % | -0.0% | -2.0% | 2.0% | -3.0% |
STMicroelectronics Share Price Analysis
Shares of STMicroelectronics were trading at $20.86 as of April 22. Over the last 52-week period, shares are down 48.76%. Given that these returns are generally negative, long-term shareholders are likely unhappy going into this earnings release.
Analysts' Take on STMicroelectronics
Understanding market sentiments and expectations within the industry is crucial for investors. This analysis delves into the latest insights on STMicroelectronics.
With 2 analyst ratings, STMicroelectronics has a consensus rating of Neutral. The average one-year price target is $27.0, indicating a potential 29.43% upside.
Analyzing Ratings Among Peers
In this analysis, we delve into the analyst ratings and average 1-year price targets of Microchip Technology, ON Semiconductor and First Solar, three key industry players, offering insights into their relative performance expectations and market positioning.
- Analysts currently favor an Buy trajectory for Microchip Technology, with an average 1-year price target of $64.4, suggesting a potential 208.72% upside.
- Analysts currently favor an Neutral trajectory for ON Semiconductor, with an average 1-year price target of $57.81, suggesting a potential 177.13% upside.
- Analysts currently favor an Outperform trajectory for First Solar, with an average 1-year price target of $246.82, suggesting a potential 1083.22% upside.
Analysis Summary for Peers
The peer analysis summary provides a snapshot of key metrics for Microchip Technology, ON Semiconductor and First Solar, illuminating their respective standings within the industry. These metrics offer valuable insights into their market positions and comparative performance.
| Company | Consensus | Revenue Growth | Gross Profit | Return on Equity |
|---|---|---|---|---|
| GLOBALFOUNDRIES | Neutral | -1.29% | $449M | -6.54% |
| Microchip Technology | Buy | -41.89% | $561.40M | -0.87% |
| ON Semiconductor | Neutral | -14.65% | $779.10M | 4.37% |
| First Solar | Outperform | 30.68% | $567.66M | 5.05% |
Key Takeaway:
STMicroelectronics ranks in the middle among its peers for Consensus rating. It is at the bottom for Revenue Growth and Gross Profit, but at the top for Return on Equity.
Unveiling the Story Behind STMicroelectronics
A merger between Italian firm SGS Microelettronica and the nonmilitary business of Thomson Semiconducteurs in France formed STMicroelectronics in 1987. STMicroelectronics is a leader in a variety of semiconductor products, including analog chips, discrete power semiconductors, microcontrollers, and sensors. It is an especially prominent chip supplier to the industrial and automotive industries.
Key Indicators: STMicroelectronics's Financial Health
Market Capitalization Analysis: The company exhibits a lower market capitalization profile, positioning itself below industry averages. This suggests a smaller scale relative to peers.
Revenue Growth: STMicroelectronics's revenue growth over a period of 3 months has faced challenges. As of 31 December, 2024, the company experienced a revenue decline of approximately -22.42%. This indicates a decrease in the company's top-line earnings. As compared to competitors, the company encountered difficulties, with a growth rate lower than the average among peers in the Information Technology sector.
Net Margin: STMicroelectronics's net margin falls below industry averages, indicating challenges in achieving strong profitability. With a net margin of 10.26%, the company may face hurdles in effective cost management.
Return on Equity (ROE): STMicroelectronics's ROE lags behind industry averages, suggesting challenges in maximizing returns on equity capital. With an ROE of 1.95%, the company may face hurdles in achieving optimal financial performance.
Return on Assets (ROA): The company's ROA is below industry benchmarks, signaling potential difficulties in efficiently utilizing assets. With an ROA of 1.36%, the company may need to address challenges in generating satisfactory returns from its assets.
Debt Management: The company maintains a balanced debt approach with a debt-to-equity ratio below industry norms, standing at 0.18.
To track all earnings releases for STMicroelectronics visit their earnings calendar on our site.
This article was generated by Benzinga's automated content engine and reviewed by an editor.