MediaTek's FY18 EPS was NTD13.26, setting a 6-year new low

MediaTek (2454-TW), a fabless semiconductor company, announced 4Q18 earnings report today on January 30th. Its net profit was NTD3.75bn(-45.4% QoQ, -63.1% YoY) with EPS of NTD2.42. Its FY18 net profit was NTD20.78bn (-13.7% YoY), with EPS of NTD13.26, setting a six-year new low.

In 1Q19, Rick Tsai, CEO of Mediatek, pointed out that growth products have entered the low season cycle, but the rest of the products are relatively stable. Due to low season, MediaTek’s 1Q19 revenue is estimated to decrease by 12-20% YoY to NTD48.7-53.6bn. Its 1Q19 GM is estimated at 38-41%, with median of 39.5%, higher than its 4Q18 GM.

In FY19, Tsai emphasized that technologies and investments may begin to contribute to the company’s revenue/earnings. Its FY19 revenue is expected to be flat or grow slightly higher YoY. And, he is confident that the company"s GM may improve in FY19.