• MediaTek’s net income for the first quarter has outperformed estimates with a total of NT$31.54 billion, showing a significant growth of 87% year over year (y/y).
• The company’s operating profit has also experienced a considerable increase, reaching NT$32.18 billion compared to NT$14.37 billion the previous year. This figure surpasses the estimate of NT$24.04 billion.
• MediaTek’s operating margin illustrated a substantial improvement, rising from 15% the previous year to 24.1%, beating the estimated 18.8%.
• Gross profit showed a surge of 52% y/y, bringing the recorded figure to NT$69.9 billion. The estimated value was significantly lower at NT$60.14 billion.
• Gross margin experienced an increase from 48% the previous year to 52.4%, which is higher than the predicted figure of 47.8%.
• Sales for the first quarter climbed 40% y/y, reaching NT$133.46 billion, a number that outperforms the estimated NT$127.18 billion.
• The Earnings Per Share (EPS) for MediaTek has almost doubled from NT$10.64 last year to NT$19.85 this year.
• According to the assessment by industry professionals, MediaTek has received 22 buys, 7 holds, and 0 sells.
• Any relative comparisons to past results are based on values reported by the company’s original disclosures.
Mediatek Inc on Smartkarma
Analysts on Smartkarma are bullish on Mediatek Inc (2454.TT). Vincent Fernando, CFA, highlights the company’s accelerating momentum in automotive, data center, and AI memory solutions, citing recent collaborations in these sectors as potential drivers for further stock growth. Despite a rally, consensus forward estimates indicate room for further upside.
Patrick Liao also expresses optimism, mentioning the upcoming release of Dimensity 9400 in September 2024F, with a focus on Generative AI in smartphone models. Anticipating revenue growth in the second quarter exceeding the first quarter, Liao views Mediatek as well-positioned to benefit from the AI trend in the smartphone market and expects a recovery in 2024F.
A look at Mediatek Inc Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 2 | |
| Dividend | 5 | |
| Growth | 4 | |
| Resilience | 5 | |
| Momentum | 3 | |
| OVERALL SMART SCORE | 3.8 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
MediaTek Inc. is an established player in the semiconductor industry, specializing in wireless communications and digital multimedia solutions. According to Smartkarma Smart Scores, the company excels in dividend payouts, growth potential, resilience, and overall value. With a solid dividend score of 5, investors can expect consistent payouts. A growth score of 4 indicates promising prospects for expansion, while a resilience score of 5 suggests the company’s ability to withstand market challenges. Although momentum is rated at 3, MediaTek Inc.’s strong fundamentals and high scores across other factors bode well for its long-term outlook.
MediaTek Inc.’s Smartkarma Smart Scores reveal a promising future for the company. Despite moderate momentum, the company shines in key areas like dividend yield, growth potential, resilience, and overall value. As a fabless semiconductor firm, MediaTek Inc. focuses on SOC system solutions for wireless communications, HD TV, optical storage, and more. Investors eyeing a company with strong fundamentals and a track record of dividend payments may find MediaTek Inc. an attractive long-term investment option based on its impressive Smart Scores.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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