Earnings Alerts

Mediatek Inc (2454) Earnings: Q4 Net Income Surpasses Estimates Despite Yearly Decline

By February 7, 2025 No Comments
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  • MediaTek’s net income for the fourth quarter was NT$23.79 billion, exceeding the estimated NT$22.47 billion, despite a year-over-year decline of 7.3%.
  • Operating profit came in at NT$21.41 billion, which was below the estimated NT$22.1 billion, marking a 13% decrease compared to the previous year.
  • The operating margin was 15.5%, down from 19.1% year-over-year, and below the expected 16.3%.
  • Gross profit increased by 7% year-over-year to NT$67 billion, surpassing the estimated NT$63.46 billion.
  • The gross margin stood at 48.5%, slightly above the previous year’s 48.3% and higher than the estimated 47.9%.
  • Sales reached NT$138.04 billion, a 6.5% increase compared to the previous year, beating the estimate of NT$132.72 billion.
  • Earnings per share (EPS) decreased from NT$16.15 in the previous year to NT$14.95.
  • In 2024, MediaTek’s R&D expenses rose by 19% year-over-year to NT$131.99 billion, above the estimated NT$128.87 billion.
  • Analyst recommendations for the company include 23 buys, 7 holds, and 0 sells.

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Mediatek Inc on Smartkarma

Analysts on Smartkarma have been closely monitoring Mediatek Inc, with a generally positive outlook on the company’s recent developments. Tech Supply Chain Tracker highlighted the support from Chinese cloud giants for DeepSeek AI, Meta and Google’s advancements in smart glasses despite supply chain challenges, and SiPh progress exceeding expectations in the optical communication market.

Under the coverage of analysts like Patrick Liao and Vincent Fernando, Mediatek Inc‘s potential growth in 1Q25, the launch of the Dimistry 9500 model, and Google’s reported switch to Mediatek’s modem for Pixel 10 have been significant focal points. These reports suggest a favorable view on Mediatek’s competitiveness and structural potential, hinting at positive prospects for the company moving forward.


A look at Mediatek Inc Smart Scores

FactorScoreMagnitude
Value2
Dividend4
Growth4
Resilience4
Momentum5
OVERALL SMART SCORE3.8

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 positioned favorably for long-term growth based on the Smartkarma Smart Scores provided. With a strong momentum score of 5, the company is showing significant positive movement in the market. Additionally, Mediatek Inc. demonstrates robust performance in terms of dividend, growth, and resilience, scoring 4 in each category. This indicates the company’s potential for sustained growth and profitability in the future.

As a fabless semiconductor company specializing in wireless communications and digital multimedia solutions, MediaTek Inc. is well-positioned to capitalize on the increasing demand for such technologies. Their SOC system solutions for various products, including high-definition TV and optical storage, further underline their versatile market presence. With solid scores across multiple key factors, MediaTek Inc. stands as a promising player in the semiconductor industry with bright long-term prospects.


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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