United Microelectronics Corp ADR Down 2.89% To $7.22 After Earnings Beat

Wednesday, October 25, 2023 - United Microelectronics Corp ADR (UMC) reported upside earnings and revenues today.

United Microelectronics Corp ADR's earnings came in at an EPS of $0.2 per share, 18.00% higher than estimates for an EPS of $0.17 per share. The firm's earnings are down 42% since reporting $0.345 per share in the same period a year ago.

Analyst projections for United Microelectronics Corp ADR revenue came in at a consensus of $1.8 billion. Third-Quarter revenues surpassed estimates for $1.8 billion by $20 million (1%). The company achieved negative 26% growth year-over-year compared to the firm's revenue of $2.4 billion from the year-ago quarter. The lower earnings growth relative to revenue signals United Microelectronics Corp ADR has not been able to improve its profit margin.

The stock is down 2.89% to $7.22 after the report.

The firm's higher revenue growth to earnings signals that the firm has not been able to reduce costs and has seen its profit margin decrease.

The average recommendation from Wall Street analysts was a Buy which may get revised based on this new data.

Trading in the five days leading up to the report earned United Microelectronics Corp ADR a Bearish Sentiment Rank from InvestorsObserver.

United Microelectronics Corp ADR has performed a little above average during the past few months. Before the report, United Microelectronics Corp ADR received a Long-Term Technical Rank by InvestorsObserver of 70, putting it in the top half of stocks. The firm set a 52-week high on June 15, 2023 at $8.97 and set a 52-week low on November 3, 2022 at $5.82.

United Microelectronics is the world's third-largest dedicated chip foundry, with 7% market share in 2021, according to Gartner, after TSMC and GlobalFoundries. UMC's headquarters are in Hsinchu, Taiwan, and it operates 12 fabs in Taiwan, Mainland China, Japan and Singapore, with additional sales offices in Europe, the U.S. and South Korea. UMC features a diverse customer base including Texas Instruments, MediaTek, Qualcomm, Broadcom, Xilinx and Realtek, supplying a wide range of products applied in communications, display, memory, automotive and more. UMC employs about 20,000 people.