StockCall Insight into Microchip Technology and STMicroelectronics: Mobile Microchip Stocks Show Growth
LONDON, February 13, 2013 /PRNewswire/ --
The semiconductor sector is still struggling to get accustomed to the impending demise of PC computing and the emergence of smartphones and tablets. There are companies like Microchip Technology Inc. (NASDAQ: MCHP), which are mainly invested in developing microchip products for mobile computing, and the impact of changing computing scenario is clearly visible as the company beat estimates for both its top- and bottom-line for its quarterly results. However, the sector also features stiff competition and companies are looking at several ways to trim their costs and boost their margins. STMicroelectronics NV (NYSE: STM) is looking to dispose of its non-core and loss making assets. StockCall has issued technical analysis and charting reports on Microchip Technology and STMicroelectronics. Download these free reports now at
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STMicroelectronics Reports Q4 Numbers
STMicroelectronics reported its fourth quarter numbers and the company offered mixed results. While at $2.16 billion, its revenue beat consensus estimate of $2.15 billion, the company's per share net loss at 48 cents lagged far behind expectation of 12 cents per share in earnings. STMicroelectronics also struggled to hold on to its margins. Its gross margin improved but its operating margin and net margin declined. Sign up and have access to our free report on STMicroelectronics NV at
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The company is now taking steps to increase its efficiency. Its priority is to restructure its business and slice off the bulk. The company recently decided to make an exit from its JV with Ericsson. Despite the fact that STMicroelectronics may have to pay up to $500 million to get out of the JV, the long-term impact of the decision is expected to be positive for the company and its stock price. The joint venture has suffered $2.8 billion worth of losses since 2009. While the company management did not provide any dateline, it is expected to finalize the exit deal by the third quarter of the year.
STMicroelectronics stock provided a 26 percent growth in the past 12 months and it is expected to perform well as it picks up revenue growth in the coming quarters. The stock also offers an attractive dividend yield of 3.93 percent and is a good option for income investors. Its stock will benefit further from the company's cost-cutting efforts to reduce its quarterly costs by $250 million by 2014. STMicroelectronics is also looking to focus on microsensor and imaging products, streamlining its efforts. Overall, the scenario looks bright for STMicroelectronics.
Microchip Technology Beats Consensus Estimates
Microchip Technology also delivered good results and provided optimistic outlook for the coming quarter. It topped analysts' expectations of $411 million in revenue by posting $416 million. Its EPS for the quarter stood at 41 cents, again beating 37 cents per share estimate. Its stock grew 11 percent so far this year, showing a reversal from its 2012 performance. The upward momentum is likely to continue as the company enjoys a good order book. Download the free research on Microchip Technology Inc. today by registering at
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Microchip Technology is one of the companies that stand to gain from the current smartphone and tablet trend. The company's microcontroller products are responsible for two-third of its revenues. Microchip Technology also has a good dividend yield of 3.85 percent. The company expects to grow its sales by 1 to 4 percent is in the process of introducing new products. The stock is expected to respond positively to these developments.
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