United Microelectronics Clocks 25% Sales Decline In August
Portfolio Pulse from Lekha Gupta
United Microelectronics Corp (UMC) reported a 25.23% year-on-year decline in net sales for August 2023, with sales for the year-to-date period also falling by 20.0%. Despite a Q2 FY23 revenue decline of 21.9%, UMC's revenue and adjusted EPS in USD beat consensus estimates. The company forecasts a 3%-4% quarter-on-quarter decline in Q3 wafer shipments and a slight reduction in gross profit margin. UMC's FY23 capital expenditure is expected to be $3.0 billion.
September 06, 2023 | 12:46 pm
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UMC reported a significant decline in sales, but beat consensus estimates for Q2 FY23 revenue and adjusted EPS. The company expects further declines in Q3.
The significant decline in sales and the forecasted further declines in Q3 are negative indicators for UMC's short-term performance. However, the company's ability to beat consensus estimates for Q2 FY23 revenue and adjusted EPS shows some resilience, which may mitigate the negative impact to some extent.
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IMPORTANCE 80
RELEVANCE 100