Does Earnings Surprise History Hold Any Clue for STMicroelectronics (NYSE:STM)


Earnings results for STMicroelectronics (NYSE:STM)

STMicroelectronics N.V. is expected* to report earnings on 10/22/2020 before market open. The report will be for the fiscal Quarter ending Sep 2020. According to Zacks Investment Research, based on 3 analysts’ forecasts, the consensus EPS forecast for the quarter is $0.3. The reported EPS for the same quarter last year was $0.34.

STMicroelectronics last issued its quarterly earnings data on July 23rd, 2020. The semiconductor producer reported $0.10 EPS for the quarter, topping analysts’ consensus estimates of $0.08 by $0.02. The company had revenue of $2.09 billion for the quarter, compared to analyst estimates of $1.99 billion. Its revenue was down 4.0% compared to the same quarter last year. STMicroelectronics has generated $1.15 earnings per share over the last year and currently has a price-to-earnings ratio of 31.6. STMicroelectronics has confirmed that its next quarterly earnings report will be published on Thursday, October 22nd, 2020.

Analyst Opinion on STMicroelectronics (NYSE:STM)

15 Wall Street analysts have issued ratings and price targets for STMicroelectronics in the last 12 months. Their average twelve-month price target is $32.23, predicting that the stock has a possible downside of 5.67%. The high price target for STM is $36.00 and the low price target for STM is $27.40. There are currently 1 sell rating, 4 hold ratings and 10 buy ratings for the stock, resulting in a consensus rating of “Buy.”

STMicroelectronics has received a consensus rating of Buy. The company’s average rating score is 2.60, and is based on 10 buy ratings, 4 hold ratings, and 1 sell rating. According to analysts’ consensus price target of $32.23, STMicroelectronics has a forecasted downside of 5.7% from its current price of $34.17. STMicroelectronics has been the subject of 9 research reports in the past 90 days, demonstrating strong analyst interest in this stock.

Dividend Strength: STMicroelectronics (NYSE:STM)

STMicroelectronics has a dividend yield of 0.41%, which is in the bottom 25% of all stocks that pay dividends. STMicroelectronics has only been increasing its dividend for 1 years. The dividend payout ratio of STMicroelectronics is 12.17%. This payout ratio is at a healthy, sustainable level, below 75%. Based on earnings estimates, STMicroelectronics will have a dividend payout ratio of 8.38% next year. This indicates that STMicroelectronics will be able to sustain or increase its dividend.

Insiders buying/selling: STMicroelectronics (NYSE:STM)

In the past three months, STMicroelectronics insiders have not sold or bought any company stock. Only 3.22% of the stock of STMicroelectronics is held by institutions.

Earnings and Valuation of STMicroelectronics (NYSE:STM

Earnings for STMicroelectronics are expected to grow by 70.41% in the coming year, from $0.98 to $1.67 per share. The P/E ratio of STMicroelectronics is 31.64, which means that it is trading at a more expensive P/E ratio than the market average P/E ratio of about 19.48. The P/E ratio of STMicroelectronics is 31.64, which means that it is trading at a less expensive P/E ratio than the Computer and Technology sector average P/E ratio of about 65.48. STMicroelectronics has a PEG Ratio of 7.04. PEG Ratios above 1 indicate that a company could be overvalued. STMicroelectronics has a P/B Ratio of 4.38. P/B Ratios above 3 indicate that a company could be overvalued with respect to its assets and liabilities.

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