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What's in Store for STMicroelectronics' (STM) Q1 Earnings?

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·4 min read
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STMicroelectronics N.V. STM is scheduled to report first-quarter 2022 results on Apr 27.

For the first quarter, the company expects net revenues to be $3.5 billion. The Zacks Consensus Estimate for revenues is pegged at $3.52 billion, implying a 16.8% rise from the figure reported in the year-ago period.

Further, the consensus mark for earnings is pegged at 71 cents per share, indicating growth of 82.1% from the year-ago reported figure. The metric has been unchanged over the past 30 days.

STM surpassed the Zacks Consensus Estimate in three of the trailing four quarters and missed the same on another occasion, with the average surprise being 7.3%.

Let’s see how things have shaped up prior to the earnings announcement.

STMicroelectronics N.V. Price and EPS Surprise

STMicroelectronics N.V. Price and EPS Surprise
STMicroelectronics N.V. Price and EPS Surprise

STMicroelectronics N.V. price-eps-surprise | STMicroelectronics N.V. Quote

Factors to Consider

STMicroelectronics’ first-quarter performance is expected to have benefited from its growing focus on smart mobility, power & energy management, Internet of Things as well as 5G.

Strong 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 might have remained a tailwind.

The company’s robust microcontrollers, sensors, power, analog and other connectivity products might have aided top-line growth in the quarter under review.

Continuous demand in high-end and consumer industrial is likely to have strengthened STMicroelectronics’ position in the industrial market in the first quarter.

The company has been consistently gaining momentum in the personal electronics market, which is likely to have remained a positive in the to-be-reported quarter.

The growing demand for smartphones and other connected devices like wearables, tablets, hearables, True Wireless Stereo headsets, and game consoles is expected to have contributed well to top-line growth in the first quarter.

Yet, STMicroelectronics’ quarterly performance is expected to have been affected by coronavirus-driven supply-chain disruptions, which, in turn, raised volatility in the semiconductor market.

Further, rising selling, general and administrative expenses are likely to have remained a 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. But, that’s not the case here. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

STMicroelectronics currently has a Zacks Rank #3 and an Earnings ESP of 0.00%.

Stocks to Consider

Here are some stocks that you may consider, as our model shows that these have the right combination of elements to beat on earnings this season.

Analog Devices ADI has an Earnings ESP of +2.17% and a Zacks Rank of 2 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Analog Devices is scheduled to release second-quarter fiscal 2022 results on May 18. The Zacks Consensus Estimate for ADI’s earnings is pegged at $2.12 per share, suggesting an increase of 37.7% from the prior-year reported figure.

Cisco Systems CSCO has an Earnings ESP of +0.84% and a Zacks Rank #2 at present.

Cisco Systems is set to report third-quarter fiscal 2022 results on May 18. The Zacks Consensus Estimate for CSCO’s earnings is pegged at 86 cents per share, which suggests an increase of 3.61% from the prior-year reported figure.

HP HPQ has an Earnings ESP of +0.78% and a Zacks Rank #3 at present.

HP is scheduled to release second-quarter fiscal 2022 results on May 26. The Zacks Consensus Estimate for HPQ’s earnings is pegged at $1.06 per share, which suggests an increase of 13.98% from the prior-year reported figure.

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


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STMicroelectronics N.V. (STM) : Free Stock Analysis Report

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