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What's in Store for United Microelectronics (UMC) Q1 Earnings?

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United Microelectronics (UMC - Free Report) is slated to report first-quarter 2023 results on Apr 26.

The Zacks Consensus Estimate for first-quarter earnings currently stands at 16 cents per share, indicating a decline of 42.7% from the year-ago reported figure.

The consensus mark for first-quarter net sales is pegged at $1.78 billion, indicating a fall of 19.5% from the year-ago quarter’s reported figure.

UMC’s earnings surpassed the Zacks Consensus Estimate in one of the trailing four quarters while missing the same in three quarters, the average negative surprise being 3.79%.

Let’s see how things have shaped up for the upcoming announcement:

Factors to Note

United Microelectronics first-quarter 2023 performance is likely to have benefited from an expanded 22/28 nanometer portfolio.

UMC's strengths in specialized technology leadership, geographically diversified capacity offering, and quality and operational excellence position it well to capture demand in the semiconductor foundry market.

Furthermore, the company is expected to benefit from the ongoing trend of digital transformation across industries in the quarter under review.

UMC’s growing efforts to focus on cost reduction and productivity improvement to remain competitive may have favored the to-be-reported quarter’s top line.

However, rising supply chain constraints due to geopolitical tensions and higher inflationary costs are likely to have negatively impacted its overall performance in the to-be-reported quarter.

Sluggish demand in the smartphone and PC consumer market is expected to have acted as a headwind for the company in the first-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:

American Airlines (AAL - Free Report) has an Earnings ESP of +85.71% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.

American Airlines shares have fallen 34.1% in the year-to-date period compared with the Zacks Transportation Airline industry’s decline of 21.9%.

AGNC Investment (AGNC - Free Report) has an Earnings ESP of +3.7% and a Zacks Rank #1.

AGNC Investment shares have fallen 15.9% in the year-to-date period compared with the Zacks REIT and Equity Trust industry’s decline of 32.3%.

Asbury Automotive Group (ABG - Free Report) has an Earnings ESP of +1.39% and a Zacks Rank #1.

Asbury Automotive shares have gained 29.2% in the year-to-date period compared with the Zacks Automotive – Retail and Whole sales industry’s gain of 14.7%.

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

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