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What's in the Store for STMicroelectronics' (STM) Q3 Earnings?
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STMicroelectronics N.V. (STM - Free Report) is scheduled to report third-quarter 2022 results on Oct 27.
For the third quarter, STM expects net revenues of $4.24 billion at the midpoint. The Zacks Consensus Estimate for revenues is pegged at $4.14 billion, implying a 29.6% rise from the year-ago quarter’s reported figure.
The consensus mark for earnings is pegged at $1.04 per share, indicating growth of 103.9% from the year-ago quarter’s reported figure. The metric has moved 0.9% down over the past seven days.
STM’s earnings surpassed the Zacks Consensus Estimate in three of the trailing four quarters and missed the same on the remaining occasion, the average surprise being 9.6%.
STMicroelectronics’ strength across its product group comprising automotive and discrete group; analog, MEMS and sensors group; and microcontrollers and digital ICs group is likely to have constantly driven its top line in the third quarter.
Increasing demand in the automotive product group across all geographies is likely to have aided STM’s performance in the to-be-reported quarter. Growing electrification and digitalization of the automotive industry are expected to have been a tailwind. Strong design wins with ST power modules in electronic vehicle applications are likely to have driven STM’s growth in the automotive market in the to-be-reported quarter.
The growing uptake of motion and environmental sensors, time-of-flight ranging sensors, wireless charging products, touch display controllers and secure solutions in smartphones is anticipated to have aided STMicroelectronics’ performance in the personal electronics market in the to-be-reported quarter.
Increasing demand for STMicroelectronics’ robust microcontrollers, sensors, power, analog and other connectivity products is likely to have boosted its top line in the industrial market during the quarter under review.
Strengthening customer engagements in cellular and satellite communication infrastructure are expected to have aided STM’s performance in the communications equipment, computer and peripherals market in the quarter under review.
All the above-mentioned factors are anticipated to have impacted the overall third-quarter performance of STMicroelectronics.
However, the coronavirus-induced supply-chain disruptions in the semiconductor market are expected to have impacted STMicroelectronics’ quarterly performance negatively. Further, growing geo-political tensions might have raised concerns.
Mounting expenses are likely to have been another headwind in the quarter under discussion.
What Our Model Says
Our proven model does not conclusively predict an earnings beat for STMicroelectronics this time around. 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, which isn’t the case here as elaborated below. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
STMicroelectronics has an Earnings ESP of -0.96% and a Zacks Rank #3.
Stocks to Consider
Here are some stocks worth considering, as our model shows that these have the right combination of elements to beat on earnings this season.
Cognizant is set to report third-quarter 2022 results on Nov 2. The Zacks Consensus Estimate for CTSH’s earnings is pegged at $1.17 per share, suggesting an increase of 10.4% from the prior-year quarter’s reported figure.
Benefitfocus has an Earnings ESP of +2.32% and a Zacks Rank of 3 at present.
Benefitfocus is scheduled to release third-quarter fiscal 2022 results on Nov 2. The Zacks Consensus Estimate for BNFT’s loss is pegged at 14 cents per share, narrower than the prior-year quarter’s reported loss of 19 cents.
CDW (CDW - Free Report) has an Earnings ESP of +0.31% and is Zacks #3 Ranked at present.
CDW is expected to release third-quarter 2022 results on Nov 2. The Zacks Consensus Estimate for CDW’s earnings is pegged at $2.52 per share, suggesting an increase of 18.3% from the year-ago quarter’s reported figure.
Image: Bigstock
What's in the Store for STMicroelectronics' (STM) Q3 Earnings?
STMicroelectronics N.V. (STM - Free Report) is scheduled to report third-quarter 2022 results on Oct 27.
For the third quarter, STM expects net revenues of $4.24 billion at the midpoint. The Zacks Consensus Estimate for revenues is pegged at $4.14 billion, implying a 29.6% rise from the year-ago quarter’s reported figure.
The consensus mark for earnings is pegged at $1.04 per share, indicating growth of 103.9% from the year-ago quarter’s reported figure. The metric has moved 0.9% down over the past seven days.
STM’s earnings surpassed the Zacks Consensus Estimate in three of the trailing four quarters and missed the same on the remaining occasion, the average surprise being 9.6%.
STMicroelectronics N.V. Price and EPS Surprise
STMicroelectronics N.V. price-eps-surprise | STMicroelectronics N.V. Quote
Factors to Consider
STMicroelectronics’ strength across its product group comprising automotive and discrete group; analog, MEMS and sensors group; and microcontrollers and digital ICs group is likely to have constantly driven its top line in the third quarter.
Increasing demand in the automotive product group across all geographies is likely to have aided STM’s performance in the to-be-reported quarter. Growing electrification and digitalization of the automotive industry are expected to have been a tailwind. Strong design wins with ST power modules in electronic vehicle applications are likely to have driven STM’s growth in the automotive market in the to-be-reported quarter.
The growing uptake of motion and environmental sensors, time-of-flight ranging sensors, wireless charging products, touch display controllers and secure solutions in smartphones is anticipated to have aided STMicroelectronics’ performance in the personal electronics market in the to-be-reported quarter.
Increasing demand for STMicroelectronics’ robust microcontrollers, sensors, power, analog and other connectivity products is likely to have boosted its top line in the industrial market during the quarter under review.
Strengthening customer engagements in cellular and satellite communication infrastructure are expected to have aided STM’s performance in the communications equipment, computer and peripherals market in the quarter under review.
All the above-mentioned factors are anticipated to have impacted the overall third-quarter performance of STMicroelectronics.
However, the coronavirus-induced supply-chain disruptions in the semiconductor market are expected to have impacted STMicroelectronics’ quarterly performance negatively. Further, growing geo-political tensions might have raised concerns.
Mounting expenses are likely to have been another headwind in the quarter under discussion.
What Our Model Says
Our proven model does not conclusively predict an earnings beat for STMicroelectronics this time around. 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, which isn’t the case here as elaborated below. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
STMicroelectronics has an Earnings ESP of -0.96% and a Zacks Rank #3.
Stocks to Consider
Here are some stocks worth considering, as our model shows that these have the right combination of elements to beat on earnings this season.
Cognizant Technology Solutions (CTSH - Free Report) has an Earnings ESP of +0.95% and a Zacks Rank #3 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Cognizant is set to report third-quarter 2022 results on Nov 2. The Zacks Consensus Estimate for CTSH’s earnings is pegged at $1.17 per share, suggesting an increase of 10.4% from the prior-year quarter’s reported figure.
Benefitfocus has an Earnings ESP of +2.32% and a Zacks Rank of 3 at present.
Benefitfocus is scheduled to release third-quarter fiscal 2022 results on Nov 2. The Zacks Consensus Estimate for BNFT’s loss is pegged at 14 cents per share, narrower than the prior-year quarter’s reported loss of 19 cents.
CDW (CDW - Free Report) has an Earnings ESP of +0.31% and is Zacks #3 Ranked at present.
CDW is expected to release third-quarter 2022 results on Nov 2. The Zacks Consensus Estimate for CDW’s earnings is pegged at $2.52 per share, suggesting an increase of 18.3% from the year-ago quarter’s reported figure.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.