Key Takeaways:
- STMicroelectronics' first-quarter performance exceeded expectations despite a significant year-over-year revenue decline.
- Analysts maintain a "Hold" rating with varied one-year price targets indicating a potential upside.
- GuruFocus projects a favorable GF Value, highlighting the stock's future potential.
STMicroelectronics Surpasses First-Quarter Earnings Expectations
STMicroelectronics (STM, Financial) has delivered a notable first-quarter earnings report, achieving a non-GAAP EPS of $0.07 alongside a revenue total of $2.52 billion. This reflects a 27.4% decline compared to the previous year yet notably surpasses projections by $10 million. Looking ahead, the company anticipates Q2 revenues to reach $2.71 billion, bolstered by a strategic cost reduction initiative aimed at significant savings by 2027.
Wall Street Analysts' Projections for STMicroelectronics
According to the one-year price targets provided by 12 analysts, STMicroelectronics NV (STM, Financial) carries an average target price of $27.58. The price forecasts range from a high of $37.30 to a low of $18.00, suggesting an average potential upside of 26.62% from the current price of $21.78. For more detailed information, visit the STMicroelectronics NV (STM) Forecast page.
Brokerage Firm Recommendations
The consensus recommendation from 13 brokerage firms rates STMicroelectronics NV (STM, Financial) at 2.7, equating to a "Hold" status. The rating scale spans from 1, representing a Strong Buy, to 5, indicating a Sell recommendation.
GF Value Assessment for STMicroelectronics
GuruFocus' estimates suggest a one-year GF Value for STMicroelectronics NV (STM, Financial) at $29.42. This indicates a projected upside of 35.08% over the current share price of $21.78. The GF Value represents GuruFocus' estimate of the fair market value based on past trading multiples, historical business growth, and future performance projections. Further insights are available on the STMicroelectronics NV (STM) Summary page.
