STMicroelectronics N.V. (EPA:STMPA) Just Released Its Half-Yearly Earnings: Here's What Analysts Think
It's been a mediocre week for STMicroelectronics N.V. (EPA:STMPA) shareholders, with the stock dropping 13% to €46.77 in the week since its latest half-yearly results. It was a credible result overall, with revenues of US$6.6b and statutory earnings per share of US$0.24 both in line with analyst estimates, showing that STMicroelectronics is executing in line with expectations. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.
Taking into account the latest results, the consensus forecast from STMicroelectronics' 19 analysts is for revenues of US$14.4b in 2026. This reflects a meaningful 10.0% improvement in revenue compared to the last 12 months. Per-share earnings are expected to leap 120% to US$1.15. In the lead-up to this report, the analysts had been modelling revenues of US$14.4b and earnings per share (EPS) of US$1.17 in 2026. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.
View our latest analysis for STMicroelectronics
The analysts reconfirmed their price target of €65.33, showing that the business is executing well and in line with expectations. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. Currently, the most bullish analyst values STMicroelectronics at €84.32 per share, while the most bearish prices it at €29.39. This is a fairly broad spread of estimates, suggesting that analysts are forecasting a wide range of possible outcomes for the business.
Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. One thing stands out from these estimates, which is that STMicroelectronics is forecast to grow faster in the future than it has in the past, with revenues expected to display 21% annualised growth until the end of 2026. If achieved, this would be a much better result than the 2.2% annual decline over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in the industry are forecast to see their revenue grow 12% per year. So it looks like STMicroelectronics is expected to grow faster than its competitors, at least for a while.
The Bottom Line
The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. Fortunately, they also reconfirmed their revenue numbers, suggesting that it's tracking in line with expectations. Additionally, our data suggests that revenue is expected to grow faster than the wider industry. The consensus price target held steady at €65.33, with the latest estimates not enough to have an impact on their price targets.
With that in mind, we wouldn't be too quick to come to a conclusion on STMicroelectronics. Long-term earnings power is much more important than next year's profits. At Simply Wall St, we have a full range of analyst estimates for STMicroelectronics going out to 2028, and you can see them free on our platform here..
Plus, you should also learn about the 3 warning signs we've spotted with STMicroelectronics (including 1 which shouldn't be ignored) .
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.