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What's in Offing for United Microelectronics' (UMC) Q4 Earnings?

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United Microelectronics (UMC - Free Report) is slated to report fourth-quarter 2021 results on Jan 25, 2022.

The Zacks Consensus Estimate for fourth-quarter earnings currently stands at 22 cents per share, unchanged over the past 30 days, but suggests an improvement of 37.5% from the year-ago reported figure.

The consensus mark for fourth-quarter net sales is pegged at $2.07 billion, indicating growth of 30.28% from the year-ago quarter’s reported figure.

Let’s see how things have shaped up for UMC prior to this announcement:

Factors at Play

United Microelectronics’ fourth-quarter performance is likely to have continued benefiting from a strong demand environment, increased pricing and full-capacity utilization.
 

 

During the last-reported quarterly results, the company had projected a 1-2% quarter-on-quarter increase in the fourth-quarter wafer shipment. United Microelectronics had also anticipated a 1-2% sequential rise in average selling price during the quarter under review.

The company’s growing efforts toward expanding its manufacturing capacities are anticipated to have helped cater to the rising wafer demand. Prospects around the P6 program are expected to have been major positives.

The increasing use of the 28-nanometer (nm) wafer in digital TVs, set-top boxes and connectivity chips designed for smartphones is likely to have fueled United Microelectronics’ 28-nm revenues in the quarter to be reported.

United Microelectronics’ ramping up of initiatives toward 22-nm wafer is likely to get reflected in the upcoming results. The rising shipment of the 22-nm wafer is likely to have contributed to the wafer revenues of United Microelectronics

Apart from this, the strong momentum across businesses associated with computer applications as well as consumer applications is anticipated to have aided the company’s fourth-quarter performance.

Nonetheless, the industry-wide supply-chain constraint is likely to have negatively impacted the company’s overall performance in the to-be-reported quarter.

Moreover, soft demand for the 40-nm technology is expected to have been a headwind for United Microelectronics. The weakening momentum across fabless customers might get reflected in the company’s fourth-quarter results.

What Our Model Indicates

Per the Zacks model, the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here.

United Microelectronics has an Earnings ESP of 0.00% and a Zacks Rank #3. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Stocks to Consider

Here are a few companies worth considering, as our model shows that these have the right combination of elements to beat on earnings in their upcoming releases:

Apple (AAPL - Free Report) has an Earnings ESP of +2.89% and a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Apple shares have returned 25.9% in the past year outperforming the Zacks Computer and Technology sector’s rise of 9.1%.

Cirrus Logic (CRUS - Free Report) has an Earnings ESP of +1.48% and a Zacks Rank of 1.

Cirrus Logic shares have declined 12% in the past year, underperforming the Zacks Computer and Technology sector.

Advanced Micro Devices (AMD - Free Report) has an Earnings ESP of +6.20% and a Zacks Rank of 2.

AMD shares have returned 44.6% in the past year, outperforming the Zacks Computer and Technology sector.

 

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.