UMC Expects Q4 Wafer Shipments To Decline, Stock Slides
Portfolio Pulse from Anusuya Lahiri
United Microelectronics Corp (UMC) reported a Q3 FY23 revenue decline of 24.3% YoY to $1.77 billion, beating the consensus of $1.75 billion. The revenue increased by 1.4% Q/Q, driven by favorable foreign exchange and a better product mix. Earnings per ADS of $0.20 beat the consensus of $0.17. However, the gross margin declined by 1,140 basis points to 35.9% due to lower utilization and weak demand across significant end markets. UMC expects Q4 FY23 wafer shipments to decline 5% and ASP in USD to stay flat quarter-over-quarter. UMC shares are trading lower by 3.29% at $7.19.
October 25, 2023 | 2:52 pm
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NEGATIVE IMPACT
UMC reported a Q3 FY23 revenue decline of 24.3% YoY but beat the consensus. Earnings per ADS of $0.20 beat the consensus of $0.17. However, the company expects Q4 FY23 wafer shipments to decline 5% and ASP in USD to stay flat quarter-over-quarter. UMC shares are trading lower by 3.29% at $7.19.
Despite beating the consensus for Q3 FY23, UMC's revenue declined by 24.3% YoY. The company also expects a decline in Q4 FY23 wafer shipments, which could negatively impact future revenues. This, combined with the current decline in share price, suggests a negative short-term impact on the stock.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100