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STMicroelectronics N.V. STM is scheduled to report first-quarter 2023 results on Apr 27.
For the first quarter, the company expects net revenues of $4.2 billion at the mid-point.
The consensus mark for earnings is pegged at 97 cents per share, indicating growth of 22.8% from the year-ago reported figure. The metric has moved 1% upward over the past 30 days.
STM surpassed the Zacks Consensus Estimate in all the trailing four quarters, the average surprise being 13.3%.
STMicroelectronics N.V. Price and EPS Surprise
STMicroelectronics N.V. price-eps-surprise | STMicroelectronics N.V. Quote
Factors to Consider
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 quarter under review.
Further, 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 first quarter.
The strong momentum in design wins of smartwatches and other wearables is likely to have been another positive.
Increasing 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 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.
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.
All the above-mentioned factors are anticipated to have affected the overall first-quarter performance of the company.
However, the coronavirus-induced supply-chain disruptions in the semiconductor market are expected to have negatively impacted STMicroelectronics’ quarterly performance.
Mounting expenses are likely to have been another headwind in the quarter under discussion. Negative impacts of rising geopolitical tensions might have been concerns.
What Our Model Says
Our proven model predicts 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. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
STMicroelectronics has an Earnings ESP of +6.56% and a Zacks Rank #2.
Other Stocks to Consider
Here are some stocks worth considering, as our model shows that these too have the right combination of elements to beat on earnings this season.
DigitalOcean DOCN has an Earnings ESP of +2.3% and a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
DOCN is scheduled to release first-quarter 2023 results on May 9. The Zacks Consensus Estimate for DOCN’s earnings is pegged at 29 cents per share, suggesting a jump from 7 cents per share reported in the prior-year quarter.
BILL Holdings, Inc. BILL has an Earnings ESP of +1.89% and a Zacks Rank #3 at present.
BILL Holdings is set to report third-quarter fiscal 2023 results on May 4. The Zacks Consensus Estimate for BILL’s earnings is pegged at 24 cents per share. The company incurred a loss of 8 cents per share in the year-ago quarter.
Ceridian HCM CDAY has an Earnings ESP of +9.09% and a Zacks Rank #3 at present.
CDAY is scheduled to report first-quarter 2023 results on May 3. The Zacks Consensus Estimate for CDAY’s earnings is pegged at 33 cents per share, suggesting an increase of 153.8% from the prior-year quarter’s 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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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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