--- the subscriber area has no ads and those above are not selected or endorsed by this site ---


STMicro and InvenSense's earnings report -3

07:47 03-Aug-15


A subscriber asks:
Seems as though there might be a chance for an upside surprise in regards to INVN's earnings. I guess it really comes down to whether they were able to maintain their market share with Iphone6s and 7. Any insight into STM's recent flat guidance further confirming this?

STM has been talking about a design win with Samsung, but the indications are that it is not for the flagship models.  Maybe the Alpha series, or Samsung's phones that are still trying to push Tizen?  It's hard to be certain, as Samsung is under pressure, but my guess is that the impact to InvenSense will be minimal.

I continue to agree that maintaining the position in the next iPhones is what the market is more concerned with, and thus guidance in this week's report is likely to take center stage for INVN.  It's always difficult to be certain with Apple, but I've seen no indication whatsoever from STMicro has replaced InvenSense in the upcoming iPhones.  Nonetheless, ST is a much bigger, more diverse company than InvenSense, so I don't see the ST's guidance as a strong data point, compared to those I've already given.  I do think there's a pretty good chance of strong upside movement for INVN if management gives good guidance, though.