Research, Charts & Company Announcements
Research Tree provides access to ongoing research coverage, media content and regulatory news on STMICROELECTRONICS NV. We currently have 6 research reports from 1 professional analysts.
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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.
Results in line with expectations, margins positive again but still desperately weak
23 Jul 15
STMicroelectronics reported its Q2 revenues, which reached $1.76bn, corresponding to a 3.2% sequential increase but to a 5.6% decrease yoy. Every segment decreased yoy, with the exception of AMS, which displayed 3.1% growth. The DPG business decreased by 20.7% yoy, but was flat sequentially. The gross margin came in at 33.8%, a 40bp sequential increase due to favourable currency effects (net of hedging) and lower unused capacity charges. Operating expenses reached $583m, leading to an operating income of $12m, corresponding to a 0.7% operating margin. FCF was positive at $53m, and net income at $35m. The company communicated a mixed guidance, with an increase in revenues of about 2.5% (+/- 3.5%), and a gross margin at 35% (+/- 2%).
Making Mobiles Better
17 Jan 17
Mobile phones are increasingly the key connection for the modern world. This means that the performance of mobile phones, and their networks, is going to become more critical for all the apps and businesses that rely on them. New technologies such as VR, AR, and AV will need better, more reliable connections to really move into the mainstream. In this thematic piece we attempt to identify some of the most important issues facing mobile phone networks and their users, and start to identify solutions and enablers that will solve these problems and create value by doing so.
Panmure Morning Note 18-01-2017
18 Jan 17
Blancco technology, a leading provider of data erasure solutions and mobile device diagnostics, has announced that its underlying profits are ahead of expectations. Organic sales growth remains strong, the group continues to win larger ticket orders and the mobile diagnostics is performing ahead of plan. Consequently, we are raising our FY17 PBT forecast from £8.0m to £8.3m.
The Slide Rule
12 Jan 17
What is The Slide Rule? The Slide Rule has been designed to dramatically simplify the identification of the best companies in the UK small/mid-cap sector by making a quantitative assessment of the relative potential of each company. At its core, The Slide Rule aims to identify those companies that create genuine shareholder value through strong returns on capital and solid growth, but also present a value opportunity with the potential tailwind of earnings momentum. Companies are assessed within a Quality, Value, Growth and Momentum (QVGM) framework.
N+1 Singer - NCC Group - Interims confirm underlying business sound
19 Jan 17
NCC’s interim results were largely flagged in the detailed trading update released in December. Group revenue increased 35% to £125.8 (organic growth +18%) and adj. EBITDA grew 15% to £21.3m. The group’s issues relating to contract losses/deferrals in the period were previously announced and are already included in our forecasts. The group has maintained its interim dividend at 1.5p, which we believe is an indication of the strong underlying business. Separately, NCC has announced that Paul Mitchell intends to step down as chairman in May ’17. We continue to believe that NCC remains a highly attractive asset in an area seeing strong structural growth and see the current share price weakness as an opportunity. We retain our Buy recommendation and 233p target price.
N+1 Singer - dotDigital Group - Trading update
17 Jan 17
dotDigital issued a trading update for the six months ended 31 December 2016, indicating revenue growth up 17% y-o-y to £15.0m with EBITDA in line with market expectations and on track for the full year. Cash has grown to £18.9m. Revenue was slightly light of expectations owing to a slower start in the US but Q2 already showed improvement with a strong pipeline building. Our EBITDA and EPS forecasts are unchanged but revenues trimmed by 4% for both years. There is much activity in broadening avenues of growth in terms of new connectors, partnerships and geographical footprint and we remain positive of its prospects. Interim results will be released on Feb 21.
33% upgrade to January 2017 PBT
09 Jan 17
Redstone has released a trading update stating it ‘expects to report EBITDA at the upper end of market expectations’. This implies EBITDA of £1.8m which is above our current estimate of £1.5m. Accordingly, we are upgrading our PBT forecast for the year ending January 2017 by 33% to £1.2m from £0.9m. We reiterate our buy recommendation with a 2.2p price target implying 69% upside.