Research, Charts & Company Announcements
Research Tree provides access to ongoing research coverage, media content and regulatory news on STMICROELECTRONICS NV. We currently have 7 research reports from 1 professional analysts.
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2017, the year for STMicroelectronics?
26 Jan 17
STMicroelectronics reported Q4 revenues of $1,859m, up 3.5% sequentially and 11.5% yoy. Every business unit grew sequentially, the strongest being AMG (+8.2%, $436m). In yoy figures, AMG is also the strongest contributor (+17.8%), followed by ADG (+12.4%, $716m), while MDG remains the laggard ($610m, -0.7%). The Others business remains on a strong ascending path ($97m, -5.9 sequentially, +106.4% yoy). The gross margin reached 37.5%, a sequential increase of 170bp including a negative impact of 20bp of unused capacity charges. Opex reached $569m, a $16m increase vs. the previous quarter. This led to an operating profit of $129m, corresponding to a 6.9% operating margin, and to a net income of $112m. Concerning the first quarter of the year, the company forecasts a 2.4% decrease sequentially at the midpoint, reflecting a better than normal seasonality, and a gross margin of 37%. The company also announced a 2017 capex target of $1-1.1bn.
Inflection point towards growth, backed by positive gross margin forecasts
27 Oct 16
STMicroemectronics reported Q3 revenues of $1,797m, up 5.5% sequentially and 1.9% yoy. Although every business apart from ADG (-2.4%) grew sequentially (7.2% for Analog & MEMS, 5.6% for Microcontrollers & Digital), in yoy figures the main business units displayed a slight decrease in revenues, most of the growth coming from the Other business unit ($103m, +106% sequentially and 80.1% yoy). The gross margin reached 35.8%, a sequential increase of 190bp despite a negative impact of 60bp of unused capacity charges. Opex reached $553m, a moderate increase vs. the previous quarter, while the opex net of grants, impairments and restructuring decreased by $23m. This led to an operating profit of $90m (corresponding to a 5% operating margin), and to a net income of $71m. Concerning the second quarter of the year, the company forecasts a 3.2% increase sequentially at the midpoint, and a gross margin of 37%.
Encouraging guidance, but will need confirmation
27 Jul 16
STMicroemectronics reported Q1 revenues of $1,703m, up 5.6% sequentially but down 3.2% yoy. Every business grew sequentially (1.9% for Analog & MEMS, 4.5% for Microcontrollers & Digital and 7.5% for Automotive & Discrete), but Analog & MEMS witnessed a 15.5% drop yoy, while the other businesses were relatively flat. The gross margin reached 33.9%, a sequential increase of 50bp despite a negative impact of 45bp of unused capacity charges. Opex reached $549m, a net decrease vs. the previous quarter, while the opex net of grants, impairment and restructuring decreased by $6m. This led to an operating profit of $28m, and a net income of $23m. Concerning the second quarter of the year, the company forecasts a 5.5% increase sequentially at the midpoint, and a gross margin of 35.5%.
Positive outlook but results remain delicate
28 Apr 16
STM reported Q1 revenues of $1,613m, down 3.3% sequentially and 5.4% yoy. The company unveiled a new reporting system, now composed of three divisions: Automotive & Discrete Group (ADG), Analog & MEMS Group (AMG) and Microcontrollers & Digital ICs Group (MDG). According to restated figures, ADG was up sequentially (5.4%) but flat yoy, AMG flat sequentially and down yoy (-17.1%) and MDG down sequentially (-13.4%) and flat yoy. The gross margin reached 33.4%, a sequential increase of 10bp despite a negative impact of 60bp of unused capacity charges. Opex reached $571m, a net increase vs. the previous quarter, although opex net of grants, impairment and restructuring actually decreased by $12m. This led to an operating loss of $33m, the first since Q1 15 (-$19m), and a net loss of $41m. Concerning the second quarter of the year, the company forecasts a 5.5% increase sequentially at the midpoint, and a gross margin at 34%.
Restructuring of the digital business finally announced, but much work remains
27 Jan 16
STM reported Q3 revenues of $1,668m, down 5.4% sequentially and 8.8% yoy. As in the previous quarter, every segment suffered but MMS (+7.3% sequentially, +13.9% yoy). Three segments decreased by more than 10% yoy: Industrial (-15.1%), DPG (-18.1%) and Analog, MEMS & Sensors (-22.2%). The gross margin reached 33.5%, a sequential decrease of 130bp, reflecting the impact of unused capacity charges of about 180bp and price pressure. Opex reached $534m, a slight increase vs. the previous quarter mostly due to seasonality and despite favorable currency effects, leading to an operating margin of 1.5% including impairments & restructuring (1.9% excluding these charges). The company announced a progressive exit from the set-top box business: 1,400 jobs will be lost worldwide, of which 1,000 in 2016, while 430 jobs are concerned in France through a voluntary departure plan. Annualized savings are expected to be $170m, and restructuring costs $170m. Concerning the first quarter of the year, the company forecasts a 3% decrease sequentially at the midpoint, and a lower gross margin at 33% due to persistent unused capacity charges and despite adjustments in the manufacturing plan. The business lines will also be reorganized into three divisions: Automotive and Discrete Group (ADG), Microcontrollers and Digital IC’s Group (MDG) and Analog and MEMS Group (AMG).
Soft results and guidance, clear trigger expected soon with DPG
29 Oct 15
STM reported Q3 revenues of $1,764m, flat sequentially but down by 6.5% yoy. Every segment suffered but Microcontrollers (+6.2% sequentially, +9.3% yoy), while Automotive grew sequentially (+2.1%) but was down yoy (-3.7%). The fall was particularly sharp in Industrial (-10.1% yoy) and in Analog, MEMS & Sensors (-14.7% sequentially, -13.1% yoy). The gross margin reached 34.8%, a sequential increase of 100bp, thanks to favourable mix and currency effects. Opex reached $522m, a net decrease vs. the previous quarter due to seasonality, a favourable mix and currency effects, leading to an operating margin of 5.2% including impairments & restructuring (5.8% excluding these charges). Concerning the final quarter of the year, the company forecasts a 6% decrease sequentially at the midpoint, and a lower gross margin at 33.5% despite adjustments in the manufacturing plan. Concerning the digital division, the final decision is expected by early 2016.
Earnings upgrade following acquisition
17 Apr 17
Following the recent acquisition of Ingresso we upgrade our estimates by c10% in 2017. Ingresso owns and operates a software platform which enables sales through global third party distribution channels. This looks another smart acquisition by ACSO who continue to create a more efficient flow in the extremely fragmented leisure and ticketing industry. We increase our T/P to 2000p and upgrade to BUY.
N+1 Singer - Servelec Group - Calling the bottom
20 Apr 17
We are increasingly confident that Servelec’s travails are behind it and the business is returning to growth. Recent share price weakness looks unwarranted in this context and the valuation now looks compelling. Our forecasts are essentially unchanged, but we see medium term upside as the group’s markets improve. Servelec remains a key idea for 2017 and we reiterate our Buy recommendation and 325p Target Price.
Positive trading update
13 Apr 17
Ahead of the April half year close PRSM has updated the market as they expect the Full Year results to be significantly ahead of market expectations. Software deal momentum continues to be very strong. They have signed 151 deals in the 5 months to March which compares very favourably with the 2016 full year of 189 deals. Half year results will be released on 27th June.
Pickup in H2 organic growth as expected
20 Apr 17
Headline revenue growth of 19% reflects a full half contribution of ID Scan and a pickup in organic growth to 12% across the year driven by the excellent performance from the higher margin international services. The mix effects of this growth resulted in EBIT of £17m, 4% ahead of our forecasts, and a 1.1pp improvement in the operating margin.
Small Cap Breakfast
19 Apr 17
Global Ports Holding—Intention to float on Standard List. International cruise ports operator. Seeking $250m raise including $75m primary offer. Dorcaster—Schedule One Update. Admission now expected 3 May. RTO of Escape Hunt raising £14m at 135p Verditek— Intention to float on AIM. On Admission, the Company's subsidiaries will be involved in advanced solar photovoltaic, filtration and absorption technologies specialising in providing environmental services. Raising £3.5m. Admission in May. Eddie Stobart Logistics— Schedule 1. Admission expected 25 April but capital raising details TBC. ADES International Holding— Intends to join the Standard List in May raising up to $170m plus a vendor sale. Provider of offshore and onshore oil and gas drilling and production services in the Middle East and Africa. Admission expected in May. Tufton Oceanic Assets– Offer extended to 9 May to enable investors to complete further due diligence.