United Microelectronics Q4 Earnings Analysis
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1h ago
0mins
Source: seekingalpha
- Earnings Performance: United Microelectronics reported Q4 GAAP EPS of $0.129, missing estimates by $0.01, although revenue reached $1.97 billion, up 2.4% year-over-year, exceeding expectations by $60 million, indicating resilience in revenue growth.
- Margins and Operating Rates: The gross margin for Q4 stood at 30.7% with an operating margin of 19.8%, maintaining relatively stable profitability despite market pressures, reflecting effective cost control measures by the company.
- Capacity and Shipments: Q4 wafer shipments totaled 994K, down 0.6% quarter-over-quarter, while total capacity was 1,305K with a utilization rate of 78%; capacity is expected to decrease to 1,283K in Q1 2026, highlighting challenges in maintaining production capacity.
- Capital Expenditure and Outlook: Capital expenditures for 2025 reached $1.6 billion with a budget of $1.5 billion for 2026; while Q1 wafer shipments and ASP are expected to remain flat, gross profit margins are projected to drop to the high-20% range, reflecting uncertainties in future growth.
Analyst Views on UMC
Wall Street analysts forecast UMC stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for UMC is 5.50 USD with a low forecast of 4.80 USD and a high forecast of 6.20 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
2 Analyst Rating
0 Buy
0 Hold
2 Sell
Moderate Sell
Current: 11.330
Low
4.80
Averages
5.50
High
6.20
Current: 11.330
Low
4.80
Averages
5.50
High
6.20
About UMC
United Microelectronics Corp is a global semiconductor foundry. The Company provides integrated circuit (IC) production for applications spanning every sector of the electronics industry. The Company operates through two segments. The Wafer Fabrication segment is mainly engaged in the manufacture of chips to the design specifications of its customers by using its own processes and techniques. The New Business segment is engaged in the research, development, manufacture and provision of solar energy. The Company is engaged in the maintenance of a customer base across various industries, including communication, consumer electronics, computer, memory, new generation light-emitting diode (LED) and others, while focusing on manufacturing for applications, including networking, telecommunications, Internet, multimedia, personal computers (PCs) and graphics.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
