United Microelectronics Reports Mixed Q4 Results Amidst Market Challenges
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1d ago
0mins
Source: seekingalpha
- Revenue Growth: United Microelectronics reported a 2.4% year-over-year increase in fourth-quarter operating revenues to NT$61.81 billion ($1.97 billion), exceeding market expectations and demonstrating resilience amid mild demand.
- Earnings Miss: The earnings per American Depositary Share (ADS) was $0.129, falling short of analyst estimates, indicating profitability pressures in a challenging demand environment.
- Capital Expenditure Plans: The company recorded $501 million in capital expenditures for Q4 2025, totaling $1.6 billion for the year, with a cash-based CAPEX budget of $1.5 billion for 2026, reflecting ongoing investment in future growth.
- Outlook: While wafer shipments are expected to remain flat in Q1, UMC is optimistic about 2026, anticipating that advanced packaging and silicon photonics will serve as new growth catalysts to meet the evolving demands of high-performance applications.
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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: 12.480
Low
4.80
Averages
5.50
High
6.20
Current: 12.480
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.
United Microelectronics to Announce Q4 Earnings on January 28
- Earnings Announcement: United Microelectronics is set to release its Q4 2023 earnings report on January 28, with consensus EPS estimated at $0.13 and revenue projected at $1.91 billion, reflecting a 3.8% year-over-year growth, indicating stable performance in the market.
- EPS Revision Trends: Over the past three months, EPS estimates have seen three upward revisions with no downward adjustments, suggesting increased analyst confidence in the company's profitability, which could positively impact stock prices.
- Revenue Estimate Adjustments: During the same period, revenue estimates have experienced 11 upward revisions and three downward revisions, indicating a generally optimistic outlook on demand for United Microelectronics in the semiconductor sector, potentially driving future growth.
- Market Reaction Anticipation: As the earnings announcement approaches, investor interest in United Microelectronics is rising, and the stock price is expected to be influenced, particularly as the company continues to demonstrate strong potential for earnings and revenue growth.
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