United Microelectronics Corp (NYSE:UMC) reported a second-quarter fiscal 2024 revenue growth of 0.9% year-on-year to $1.750 billion (NT$56.80 billion), missing the analyst consensus estimate of $1.762 billion.
The revenue increased by 4.0% Q/Q, driven by notable demand momentum in the consumer segment.
Earnings per ADS of $0.17 beat the analyst consensus estimate of $0.15.
Revenue from 22 and 28nm was 33% of the wafer revenue driven by healthy demand for WiFi and Digital TV apps, while 40nm contribution declined to 12% of sales.
The gross margin declined by 80 basis points Y/Y to 35.2%. Capital expenditure spending totaled $644 million in the quarter.
Outlook: UMC expects improved end-market dynamics in the third quarter, particularly in the communication and computing segments.
The company expects third-quarter wafer shipments to increase by mid-single digit % and ASP in USD to stay flat quarter-over-quarter. It also expects capacity utilization to be in the approximately 70% range. UMC expects a 2024 capex of $3.3 billion.
Price Action: UMC shares are trading higher by 8.34% at $8.05 at the last check Wednesday.
Image via Shutterstock
- AMD Skyrockets Over 9%, Nvidia Rises In Sympathy: What's Going On