United Microelectronics (NYSE:UMC) Releases Quarterly Earnings Results, Misses Estimates By $0.02 EPS

United Microelectronics (NYSE:UMC) posted its quarterly earnings data on Wednesday. The semiconductor company reported $0.21 EPS for the quarter, missing analysts’ consensus estimates of $0.23 by ($0.02), FiscalAI reports. United Microelectronics had a return on equity of 20.86% and a net margin of 31.96%. The business had revenue of $2.33 billion for the quarter, compared to analyst estimates of $2.33 billion.

Here are the key takeaways from United Microelectronics’ conference call:

• Strong third-quarter execution: Revenue rose 8% sequentially to NT$74.2 billion, gross margin improved to 34%, utilization reached 92%, and wafer shipments hit a record high as demand strengthened across market segments.
• Constructive fourth-quarter outlook: UMC expects low-single-digit shipment growth, firm U.S.-dollar ASPs, gross margin comparable to the third quarter, and utilization in the low-90% range.
• Potential pricing inflection in 2027: Management expects blended ASPs to increase approximately 10% year over year in 2027, supported by tighter capacity in selected technologies, cost pressures, and a richer product mix.
• Accelerated investment in AI-related technologies: The board approved approximately US$3.2 billion of additional capital spending for silicon photonics, advanced packaging, silicon capacitors, and TFLN modulators, with major capacity ramps planned from late 2028 through 2030.
• Higher investment costs may limit gross-margin expansion: Rising depreciation from the expanded capital program and higher raw-material costs are expected to pressure gross margins over the next two years, even as management forecasts healthy EBITDA margins and continued demand growth.

United Microelectronics Stock Down 8.1%

UMC stock traded down $1.47 during trading on Friday, reaching $16.57. 3,622,998 shares of the stock were exchanged, compared to its average volume of 13,155,781. The firm’s 50 day moving average is $21.66 and its 200 day moving average is $16.97. The firm has a market cap of $41.73 billion, a P/E ratio of 15.32, a price-to-earnings-growth ratio of 0.44 and a beta of 1.60. The company has a current ratio of 2.17, a quick ratio of 1.81 and a debt-to-equity ratio of 0.10. United Microelectronics has a twelve month low of $6.97 and a twelve month high of $28.96.

Analyst Ratings Changes

Several research analysts have commented on UMC shares. Wall Street Zen raised United Microelectronics from a “hold” rating to a “buy” rating in a research note on Saturday, July 25th. Arete Research upgraded shares of United Microelectronics from a “neutral” rating to a “buy” rating in a research report on Monday, August 10th. HSBC raised shares of United Microelectronics from a “hold” rating to a “buy” rating and decreased their target price for the company from $37.42 to $33.76 in a research report on Thursday, July 30th. Weiss Ratings downgraded United Microelectronics from a “buy (b-)” rating to a “hold (c+)” rating in a report on Friday, October 23rd. Finally, Zacks Research lowered United Microelectronics from a “strong-buy” rating to a “hold” rating in a research report on Friday, September 25th. Two analysts have rated the stock with a Buy rating, three have assigned a Hold rating and three have assigned a Sell rating to the company. According to MarketBeat.com, United Microelectronics has an average rating of “Reduce” and an average target price of $36.79.

About United Microelectronics

United Microelectronics Corp. (NYSE:UMC) is a Taiwan-based semiconductor foundry that manufactures integrated circuits for other companies. As a pure-play foundry, UMC focuses on producing chips designed by customers rather than marketing its own branded semiconductor products.

The company provides wafer fabrication services across a range of process technologies, with particular expertise in specialty applications such as display driver ICs, automotive semiconductors, connectivity products, image sensors, power management components and embedded memory.