What's in Store for STMicroelectronics (STM) in Q3 Earnings?
STMicroelectronics N.V. STM is scheduled to report third-quarter 2023 results on Oct 26.
For the third quarter, the company expects net revenues of $4.38 billion at the mid-point. The Zacks Consensus Estimate for revenues is pegged at $4.36 billion, implying a 0.9% year-over-year rise.
The consensus mark for earnings is pinned at $1.08 per share, indicating a decline of 6.9% 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 9.53%.
Factors to Consider
Increasing demand in the automotive product group across all geographies is likely to have aided STM’s performance in the to-be-reported quarter. The 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 its growth in the automotive market in the to-be-reported quarter.
Solid demand for the company’s robust microcontrollers, microprocessors, sensors, power, analog and other connectivity products is likely to have driven its top-line growth in the industrial market in the third quarter.
STM’s robust portfolio of embedded processing solutions might have aided it in winning design wins across a wide range of industrial applications.
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 its performance in the personal electronics market in the third quarter.
The strong momentum in design wins of smartwatches and other wearables is likely to have been another positive.
Strengthening customer engagements in cellular and satellite communication infrastructure is expected to have aided STM’s performance in the communications equipment, computer and peripherals market in the quarter under review.
However, mounting expenses are likely to have been a negative in the quarter under discussion. The negative impacts of rising geopolitical tensions might have been a concern.
The growing macroeconomic challenges are likely to have remained a headwind.
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.
STMicroelectronics has an Earnings ESP of -3.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
STM carries a Zacks Rank #2.
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.
Beacon Roofing Supply BECN has an Earnings ESP of +7.93% and a Zacks Rank #3 at present. You can see the complete list of today's Zacks #1 Rank stocks here.
Beacon Roofing Supply is scheduled to release its third-quarter 2023 results on Nov 2. The Zacks Consensus Estimate for BECN’s earnings is pegged at $2.54 per share, suggesting growth of 12.9% from the prior-year period’s reported figure.
Chipotle Mexican Grill CMG has an Earnings ESP of +0.19% and a Zacks Rank #3 at present.
Chipotle Mexican Grill is set to report third-quarter 2023 results on Oct 26. The Zacks Consensus Estimate for CMG’s earnings is pinned at $10.48 per share, implying growth of 10.2% from the prior-year quarter’s reported figure.
CVS Health CVS has an Earnings ESP of +0.98% and a Zacks Rank #3 at present.
CVS is set to report third-quarter 2023 results on Nov 1. The Zacks Consensus Estimate for CVS’s earnings is pegged at $2.13 per share, suggesting growth of 1.91% from the prior-year period’s reported figure.
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STMicroelectronics N.V. (STM) : Free Stock Analysis Report
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Beacon Roofing Supply, Inc. (BECN) : Free Stock Analysis Report
