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What's in Store for STMicroelectronics (STM) in Q4 Earnings?
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STMicroelectronics (STM - Free Report) is scheduled to report fourth-quarter 2023 results on Jan 25.
For the fourth quarter, the company expects net revenues of $4.30 billion at the mid-point. The Zacks Consensus Estimate for revenues is pegged at $4.30 billion, implying a 2.8% year-over-year decline.
The consensus mark for earnings is pinned at 96 cents per share, indicating a decline of 27.3% from the year-ago reported figure.
STM surpassed the Zacks Consensus Estimate in three of the trailing four quarters while missing the same once, the average surprise being 8.5%.
Increasing demand in the automotive product group, driven by mobility, digitalization and strong momentum across legacy applications, is likely to have aided STM’s performance in the fourth quarter of 2023.
Further, the growing customer engagement in the automotive market is likely to have been a tailwind for the company in the to-be-reported quarter.
Strong demand across all applications related to renewable energy generation, energy storage, power conversion, charging infrastructure for in-mobility, factory automation and motor control is expected to have driven its top-line growth in the industrial market in the fourth quarter.
The company’s increasing focus on embedded processing solutions, owing to its expanding STM32 portfolio, growing customer engagement for edge AI deployment and AI algorithm integration to existing microcontroller unit offerings, are likely to have boosted its performance in the quarter under review.
The company’s growing customer base in its BiCMOS9 processes and packaging technology, owing to STM’s collaboration with SpaceX's Starlink, is expected to have benefited the upcoming quarterly results.
However, weakening demand in the Asian industrial end market, owing to low order booking in China, is expected to have impacted STM’s growth negatively in the quarter under discussion.
STM’s weakening momentum across the personal electronics market is expected to have been a concern.
The growing macroeconomic challenges, rising geopolitical tensions and unfavorable seasonality are likely to have remained headwinds for the company in the fourth quarter.
What Our Model Says
The Zacks model predicts that 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.
STMicroelectronics has an Earnings ESP of 0.00% and a Zacks Rank #4 (Sell) at present. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks to Consider
Here are some stocks worth considering, as our model shows that they have the right combination of elements to beat on earnings this season.
Apple is scheduled to release first-quarter fiscal 2024 results on Feb 1. The Zacks Consensus Estimate for AAPL’s earnings is pegged at $2.08 per share, suggesting a jump of 10.6% from the prior-year quarter.
A. O. Smith (AOS - Free Report) has an Earnings ESP of +3.80% and a Zacks Rank #2 at present.
A. O. Smith is set to report fourth-quarter 2023 results on Jan 30. The Zacks Consensus Estimate for AOS’s earnings is pegged at 95 cents per share, suggesting growth of 10.5% from the prior-year period’s reported figure.
Alphabet (GOOGL - Free Report) has an Earnings ESP of +2.26% and a Zacks Rank #3 at present.
Alphabet is scheduled to release fourth-quarter 2023 results on Jan 30. The Zacks Consensus Estimate for GOOGL’s earnings is pinned at $1.62 per share, indicating growth of 54.3% from the year-ago quarter.
Image: Bigstock
What's in Store for STMicroelectronics (STM) in Q4 Earnings?
STMicroelectronics (STM - Free Report) is scheduled to report fourth-quarter 2023 results on Jan 25.
For the fourth quarter, the company expects net revenues of $4.30 billion at the mid-point. The Zacks Consensus Estimate for revenues is pegged at $4.30 billion, implying a 2.8% year-over-year decline.
The consensus mark for earnings is pinned at 96 cents per share, indicating a decline of 27.3% from the year-ago reported figure.
STM surpassed the Zacks Consensus Estimate in three of the trailing four quarters while missing the same once, the average surprise being 8.5%.
STMicroelectronics N.V. Price and EPS Surprise
STMicroelectronics N.V. price-eps-surprise | STMicroelectronics N.V. Quote
Factors to Consider
Increasing demand in the automotive product group, driven by mobility, digitalization and strong momentum across legacy applications, is likely to have aided STM’s performance in the fourth quarter of 2023.
Further, the growing customer engagement in the automotive market is likely to have been a tailwind for the company in the to-be-reported quarter.
Strong demand across all applications related to renewable energy generation, energy storage, power conversion, charging infrastructure for in-mobility, factory automation and motor control is expected to have driven its top-line growth in the industrial market in the fourth quarter.
The company’s increasing focus on embedded processing solutions, owing to its expanding STM32 portfolio, growing customer engagement for edge AI deployment and AI algorithm integration to existing microcontroller unit offerings, are likely to have boosted its performance in the quarter under review.
The company’s growing customer base in its BiCMOS9 processes and packaging technology, owing to STM’s collaboration with SpaceX's Starlink, is expected to have benefited the upcoming quarterly results.
However, weakening demand in the Asian industrial end market, owing to low order booking in China, is expected to have impacted STM’s growth negatively in the quarter under discussion.
STM’s weakening momentum across the personal electronics market is expected to have been a concern.
The growing macroeconomic challenges, rising geopolitical tensions and unfavorable seasonality are likely to have remained headwinds for the company in the fourth quarter.
What Our Model Says
The Zacks model predicts that 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.
STMicroelectronics has an Earnings ESP of 0.00% and a Zacks Rank #4 (Sell) at present. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks to Consider
Here are some stocks worth considering, as our model shows that they have the right combination of elements to beat on earnings this season.
Apple (AAPL - Free Report) has an Earnings ESP of +2.13% and a Zacks Rank #2 at present. You can see the complete list of today's Zacks #1 Rank stocks here.
Apple is scheduled to release first-quarter fiscal 2024 results on Feb 1. The Zacks Consensus Estimate for AAPL’s earnings is pegged at $2.08 per share, suggesting a jump of 10.6% from the prior-year quarter.
A. O. Smith (AOS - Free Report) has an Earnings ESP of +3.80% and a Zacks Rank #2 at present.
A. O. Smith is set to report fourth-quarter 2023 results on Jan 30. The Zacks Consensus Estimate for AOS’s earnings is pegged at 95 cents per share, suggesting growth of 10.5% from the prior-year period’s reported figure.
Alphabet (GOOGL - Free Report) has an Earnings ESP of +2.26% and a Zacks Rank #3 at present.
Alphabet is scheduled to release fourth-quarter 2023 results on Jan 30. The Zacks Consensus Estimate for GOOGL’s earnings is pinned at $1.62 per share, indicating growth of 54.3% from the year-ago quarter.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.