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.
N+1 Singer - NCC Group - Further issues in Assurance
22 Feb 17
NCC released a trading update yesterday afternoon highlighting further issues in its Assurance division. Sales growth has been lower than expected in all regions, resulting in a significant reduction in full year expectations. We have reduced our EPS forecasts by 25% in FY’17 and 22%/25% in FY’18/’19 respectively. Escrow continues to perform in line with expectations. In response to these issues the Board has announced a strategic review into all of the Assurance businesses. The results of the strategic review are expected to be announced at the FY results in July. With an extended period of uncertainty on the horizon we believe it will be hard for investors to gain confidence in NCC in the short term. That said we see fundamental value in the stock. Escrow is unaffected by this warning and remains an extremely high quality business, which we value at £353m in our SOTP. At the current share price this leaves Assurance valued at c.5x cal’17 EBITDA. While this appears to be an attractive multiple for a rare cybersecurity asset, we would like further clarity on the underlying nature of the current issues, hence our Hold recommendation. Our 138p target price assumes a 12x EBITDA multiple for Assurance but we apply a 20% discount to the group to account for the current uncertainty.
20 Feb 17
Hayward Tyler Group* (HAYT): Trading update and financial position (CORP) | Petra Diamonds (PDL): Interim results (BUY) | Gemfields* (GEM): Interim results (CORP) | Premaitha Health* (NIPT): Middle East momentum (CORP) | Sound Energy (SOU): Acquisition update and TE-8 well spud (HOLD) | Proactis* (PHD): Interim trading on track (CORP) | 7digital* (7DIG): Automotive contract win (CORP)
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.
21 Feb 17
Lighthouse Group* (LGT): Middle Britain growth (CORP) | Utilitywise* (UTW): Double-digit sales growth (CORP) | Trakm8* (TRAK): Earnings expectations cut again (CORP) | dotDigital* (DOTC): Myriad growth opportunities (CORP) | Artilium* (ARTA): Five-year Telenet deal secured and prepaid (CORP) | Netcall* (NET): Cloud investment pays off (CORP)
N+1 Singer - Small-cap quantitative research - New quality style screen + 11 quality focus stocks
09 Feb 17
We introduce our fourth and final style screen representing “quality”. This screens for stocks with the best combination of high returns on capital/equity, EBIT margins and operating cash-flow conversion rates. These criteria should help us monitor how strong underlying returns translate into share price performance over time and under varying market conditions. The screen selects the “best” 25 stocks from our universe of just over 500 stocks and, as usual, we focus on a shorter list of stocks we cover or otherwise know and believe to be particularly interesting. We provide brief investment summaries on these focus stocks on pages 4 – 9. We will monitor performance and refresh the screen in approximately 3-4 months time.
N+1 Singer - Morning Song 22-02-2017
22 Feb 17
CORETX (COR LN) Contract wins and new Lifestyle facility | Gooch & Housego (GHH LN) Solid Q1 trading plus earnings enhancing acquisition of StingRay Optics | NCC Group (NCC LN) Further issues in Assurance | PCI-PAL (PCIP LN) Strong H1 underpins positive outlook | UBM (UBM LN) Results | Verona Pharma (VRP LN) Phase IIa RPL554 add-on trial to tiotropium commenced