United Microelectronics Corporation Surpasses Q2 Expectations with Strong Earnings and Revenue
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United Microelectronics GAAP EPS of $0.17 beats by $0.03, revenue of $1.75B beats by $40M (NYSE:UMC)
United Microelectronics press release (NYSE:UMC): Q2 GAAP EPS of $0.17 beats by $0.03. Revenue of $1.75B beats by $40M. Second quarter consolidated revenue was NT$56.80 billion, increasing 4.0% from NT$54.63 billion in 1Q24. Third Quarter 2024 Outlook & Guidance Quarter-over-Quarter Guidance: Wafer Shipments: Will increase by mid-single digit % ASP in USD: Will remain firm Gross Profit Margin: Will be in the mid-30% range Capacity Utilization: approximately 70% 2024 CAPEX: US$3.3 billion More on United Microelectronics United Microelectronics: Stock Valued Just Right United Microelectronics Corporation: The Foundry Market Is Changing United Microelectronics: A Value Stock With AI Exposure United Microelectronics Q2 2024 Earnings Preview United Microelectronics sales plunged ~8% in June
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United Microelectronics shares gain 4% on Q2 earnings, revenue beat By Investing.com
TAIPEI - United Microelectronics Corporation (NYSE:UMC), a leading global semiconductor foundry, today announced its financial results for the second quarter of 2024, surpassing analyst expectations. UMC shares were up 4.4% Wednesday following the announcement. The company reported earnings per share (EPS) of $0.17, which is $0.03 higher than the analyst estimate of $0.14. Revenue for the quarter was reported at $1.75 billion, marginally exceeding the consensus estimate of $1.74 billion. In the second quarter, UMC saw a revenue increase of 4.0% from the first quarter and a modest year-over-year (YoY) growth of 0.9%. The gross margin for the quarter stood at 35.2%, with the company's net income attributable to shareholders reaching $425 million. Co-president Jason Wang attributed the strong quarter to a 2.6% quarter-over-quarter (QoQ) increase in wafer shipments and a rise in fab utilization rate to 68%. Wang highlighted the demand momentum in the consumer segment and the sequential growth in the 22/28nm business, driven by demand for WiFi and digital TV applications. Looking ahead to the third quarter, UMC forecasts wafer shipments to increase by a mid-single-digit percentage and expects the gross profit margin to be in the mid-30% range, with capacity utilization at approximately 70%. The company plans a capital expenditure (CAPEX) of $3.3 billion for 2024. Wang also commented on UMC's commitment to technology leadership and environmental goals, stating, "During the quarter, we announced technology updates including a 3D IC solution to stack RFSOI wafers, which is the first of its kind in the industry, and a 22nm embedded high voltage platform, currently the most advanced display driver foundry solution in the market. They reflect UMC's commitment to building on our leadership across a number of specialty technologies that are crucial for the development of AI, 5G, and automotive." UMC continues to focus on its net-zero by 2050 goal, with ongoing efforts to reduce emissions and increase the use of renewable energy. The company is on track to meet its 2025 and 2030 targets, with more details to be provided in the upcoming Sustainability Report.
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United Microelectronics Corporation (UMC) reported impressive Q2 2023 results, beating analyst estimates for both earnings per share and revenue. The company's performance led to a significant boost in its stock price.
Q2 2023 Financial Highlights
United Microelectronics Corporation (UMC), a leading global semiconductor foundry, has reported its financial results for the second quarter of 2023, surpassing analyst expectations. The company's strong performance has led to a notable increase in its stock price, reflecting investor confidence in UMC's business strategy and market position.
UMC reported a GAAP earnings per share (EPS) of $0.17, significantly beating the analyst consensus estimate of $0.03
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. This impressive EPS figure demonstrates the company's ability to maintain profitability despite challenging market conditions.Revenue Performance
The company's revenue for Q2 2023 stood at $1.75 billion, exceeding analyst expectations by $40 million
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. This strong revenue performance underscores UMC's resilience in the face of global economic uncertainties and its ability to capitalize on the growing demand for semiconductor products.Stock Market Reaction
Following the announcement of these better-than-expected results, UMC's shares experienced a significant boost. The stock price gained 4% in response to the earnings and revenue beat
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. This positive market reaction reflects investor optimism about UMC's future prospects and its competitive position in the semiconductor industry.Related Stories
Industry Implications
UMC's strong performance comes at a time when the global semiconductor industry is facing various challenges, including supply chain disruptions and geopolitical tensions. The company's ability to outperform expectations suggests that it has successfully navigated these obstacles and may be well-positioned to capitalize on future opportunities in the market.
Looking Ahead
While the company has not provided detailed guidance for the upcoming quarters, the robust Q2 results have set a positive tone for UMC's future performance. Investors and analysts will likely be watching closely to see if the company can maintain this momentum in the face of ongoing industry challenges and evolving market dynamics.
As the semiconductor industry continues to play a crucial role in technological advancements across various sectors, UMC's strong financial performance positions it as a key player in this vital market. The company's ability to exceed expectations in both earnings and revenue demonstrates its operational efficiency and strategic market positioning.
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