United Microelectronics Corporation UMC is scheduled to report second-quarter 2021 results on Jul 28.

For the second quarter, the Zacks Consensus Estimate for net sales is pegged at $1.82 billion, indicating growth of 21.4 % from the prior-year quarter’s reported figure.

The Zacks Consensus Estimate for second-quarter earnings currently stands at 14 cents per share, which suggests an improvement of 55.6% from the year-ago reported figure.

United Microelectronics Corporation Price and EPS Surprise

United Microelectronics Corporation price-eps-surprise | United Microelectronics Corporation Quote

Factors to Note

The company’s strengthening wafer shipments on the back of robust wafer demand are expected to have driven top-line growth in the second quarter.

The increasing use of 28-nanometer (nm) wafer in digital TV, set-top box and connectivity chips designed for smartphones is likely to have benefited United Microelectronics’ 28 nm revenues in the quarter to be reported.

The company’s ramping up initiatives toward 22 nm wafer is likely to get reflected in the upcoming results. Rising shipment of 22 nm wafer is likely to have contributed to the wafer revenues of United Microelectronics.

The company’s growing efforts toward expanding its manufacturing capacities are anticipated to have aided in catering to the rising wafer demand. Prospects around the P6 program are expected to have been major positives.

Apart from this, strong momentum across businesses associated with computer applications as well as consumer applications is anticipated to have benefited the company’s second-quarter performance.

However, soft demand for 40 nm technology is expected to have been a headwind for United Microelectronics. Weakening momentum across fabless customers is expected to get reflected in the company’s second-quarter results.

Sluggishness in the communication segment, comprising broadband, LAN, handset components, Bluetooth and Ethernet, is anticipated to have been a negative in the to-be-reported quarter.

What Our Model Says

Our proven model does not conclusively predict an earnings beat for United Microelectronics this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

United Microelectronics has an Earnings ESP of 0.00% and a Zacks Rank #3 at present.

Stocks to Consider

Here are some stocks that you may consider as our model shows that these have the right combination of elements to beat on earnings this season.

CyberArk Software Ltd. CYBR has an Earnings ESP of +37.93% and a Zacks Rank of 1, at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Carrier Global Corporation CARR has an Earnings ESP of +1.45% and a Zacks Rank of 2, currently.

Waters Corporation WAT has an Earnings ESP of +2.71% and a Zacks Rank of 3 at present.

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