|Bid||21.31 x 0|
|Ask||21.63 x 0|
|Day's Range||21.33 - 21.77|
|52 Week Range||10.63 - 22.32|
|Beta (3Y Monthly)||1.21|
|PE Ratio (TTM)||18.31|
|Forward Dividend & Yield||0.21 (0.97%)|
|1y Target Est||N/A|
As cars get smarter, semiconductor companies are poised to benefit. Automotive chip sales could quadruple over the next two decades, consulting firm KPMG said ahead of the LA Auto Show.
Increased sales in the imaging, analog, power discrete and microelectromechanical systems segments were largely offset by softness in the digital integrated circuits, automotive and microcontrollers markets, STMicroelectronics said.
(Bloomberg) -- Terms of Trade is a daily newsletter that untangles a world embroiled in trade wars. Sign up here. Texas Instruments Inc. shares plunged the most in almost 11 years after the chipmaker gave a weaker-than-expected forecast and warned that trade tension is making customers far more cautious. The report spurred a sell off in semiconductor stocks.Investors have poured money into chip stocks this year, betting on a rebound in demand. That hasn’t happened as a U.S.-China trade war drags on, undermining economic growth. Texas Instruments, the first big semiconductor maker to report in this earnings cycle, has products in almost all markets that use electronic components, making its predictions a broad indicator.The company said most of its markets deteriorated in the quarter, with automotive and communications-equipment demand among the weakest. Companies are cutting back on orders as they wait for China and the U.S. to reach a definitive trade agreement, Chief Financial Officer Rafael Lizardi said.“Macro is weak because of trade tensions,” Lizardi added in an interview on Tuesday. “When that happens, companies pull back.”Texas Instruments shares dropped as much as 13% Wednesday. They were down 8.7% to $117.35 at 9:40 a.m. in New York. European peers also declined. STMicroelectronics NV and Infineon Technologies AG declined as much as 4.9% and 4.2% respectively before 11:30 a.m. in central Europe.Texas Instruments has more than 100,000 customers and a similar number of products, so a drop in orders signifies a weaker economy, not a loss of market share, the CFO also said.Fourth-quarter earnings will be 91 cents a share to $1.09 a share on revenue of $3.07 billion to $3.33 billion, the Dallas-based company said in a statement. On average, analysts predicted profit of $1.28 a share and sales of $3.59 billion, according to data compiled by Bloomberg. At the mid-point, Texas Instruments’ projections represents a 14% decline in revenue from a year earlier.The company had said sales declines this year were the result of torrid growth in 2018 when customers accumulated inventory they’re now working through. A normal pattern would result in five quarterly declines before the backlog is cleared. The quarterly results reported on Tuesday marked the fourth period of contraction, so Wall Street was looking for signs of improvement. That made the warning from Texas Instruments particularly disappointing.“It’s more concerning for the global growth outlook going forward,” said Logan Purk, an analyst at Edward D. Jones & Co. “It’s not good for the rest of the semiconductor space or markets in general.”The world’s sixth-largest chipmaker reported third-quarter net income fell to $1.43 billion, or $1.49 per share, from $1.57 billion, or $1.58 a share, in the same period a year earlier. Revenue dropped 11% to $3.77 billion. Analysts had estimated a profit of $1.42 a share on sales of $3.81 billion.The company gets the biggest portions of its revenue from the industrial and automotive markets where its chips provide key basic functionality such as power regulation and the translation of real-word experiences like sound and pressure into electronic signals. It’s a major supplier of parts for communications equipment such as mobile phone network base stations. Demand for that kind of chip dropped 20%, the company said.(Updates with share trading in fifth paragraph.)To contact the reporter on this story: Ian King in San Francisco at firstname.lastname@example.orgTo contact the editors responsible for this story: Jillian Ward at email@example.com, Andrew Pollack, Jennifer RyanFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
Every investor in STMicroelectronics N.V. (EPA:STM) should be aware of the most powerful shareholder groups. Generally...
World-class money managers like Ken Griffin and Barry Rosenstein only invest their wealthy clients' money after undertaking a rigorous examination of any potential stock. They are particularly successful in this regard when it comes to small-cap stocks, which their peerless research gives them a big information advantage on when it comes to judging their worth. […]
Could STMicroelectronics N.V. (EPA:STM) be an attractive dividend share to own for the long haul? Investors are often...
Does the June share price for STMicroelectronics N.V. (EPA:STM) reflect what it's really worth? Today, we will...
Assessing STMicroelectronics N.V.'s (EPA:STM) past track record of performance is a useful exercise for investors. It...
A spokesman for Infineon Technologies AG -- one of Europe’s largest chipmakers -- said the majority of products it delivers to Huawei are not subject to U.S. restrictions, adding that the chipmaker can "make adaptions in our international supply chain." Austria-based AMS AG also said that it had not suspended shipments to Huawei. Infineon has suspended deliveries to Huawei, Nikkei Asian Review reported earlier Monday, citing two people familiar with the matter. The U.S. Commerce Department has said it will put Huawei on an “Entity List” -- meaning any U.S. company will need a special license to sell products to the world’s largest networking gear maker and second-largest smartphone brand.
STMicroelectronics declined to comment on Monday on a report in the Nikkei Asian Review that said it was set to have meetings this week to discuss whether to continue shipping to Huawei. The Nikkei Asian Review had earlier reported that German chipmaker Infineon had suspended shipments to Huawei Technologies, in a sign that Washington's crackdown on the Chinese tech company is beginning to hamper its supplies beyond the United States. According to regulatory filings, Huawei is among STMicroelectronics' top 10 customers.
In the first public comments by a European leader since Wednesday’s move by Trump, Macron told Bloomberg Television he doesn’t intend to capitulate to U.S. pressure to block Huawei’s 5G equipment. France, Germany and the U.K. are among the key allies balking at American demands to shut Huawei out completely from 5G network construction -- or risk retribution.
Franco-Italian chipmaker STMicroelectronics said it expected a surge in profit growth thanks to higher sales to automotive, industrial and smartphone clients. The Geneva-based company, whose customers include iPhone maker Apple and electric car maker Tesla, sees full-year operating margin to be in the range of 17-19% in the mid-term, up from about 14.5% in 2018, it said in a statement. "We have the determination to make ST stronger, with the ambition to outperform the markets we serve to become a sustainable and profitable $12 billion company in the mid-term," chief executive Jean-Marc Chery told investors in London.
Want to participate in a short research study? Help shape the future of investing tools and you could win a $250 gift card! If you want to know who really controls STMicroelectronics N.V. (EPA:STM), then you'll have to look a...
Franco-Italian chipmaker STMicroelectronics struck an upbeat tone for the second half of the year on Wednesday after a steep fall in quarterly sales of sensors compelled it to trim its investment plans. The supplier to iPhone maker Apple and electric carmaker Tesla saw signs of recovery in the first quarter and expects higher demand for industrial sensors and silicon-carbide semiconductors, aimed at making electric cars more independent. STMicro's shares were up by about 3 percent at 0913 GMT, valuing the company at 14.4 billion euros ($16.15 billion).