AU Optronics (AUO) Stock Declines Today Following Earnings Miss

NEW YORK (TheStreet) -- AU Optronics (AUO) shares are down 3.55% to $5.71 in trading on Thursday after the flat panel display manufacturer reported its fourth quarter earnings results before the opening bell today.

The Taiwanese company reported fourth quarter earnings of NT$0.62 cents per diluted share on revenue of NT$105.45 billion, which is a 2.7% increase over the same period last year. Analysts on average were expecting the company to report earnings of NT$0.69 cents per diluted share on revenue of NT$104.29 billion.

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The company also said that shipments would continue to decrease from the previous quarter due to seasonal factors. Shipments of small and medium-sized panels decreased 11.4% sequentially in the fourth quarter to 42.71 million units.

For the current quarter, the company said that it expects shipments of large panels to decrease by between high single digits to the low teens on a percentage basis. Small and medium-sized panels shipments are expected to decline between mid to high single digit percentage points from the previous quarter.

TheStreet Ratings team rates AU OPTRONICS CORP as a Hold with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:

"We rate AU OPTRONICS CORP (AUO) a HOLD. The primary factors that have impacted our rating are mixed - some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its solid stock price performance, impressive record of earnings per share growth and compelling growth in net income. However, as a counter to these strengths, we find that the company's profit margins have been poor overall."

Highlights from the analysis by TheStreet Ratings Team goes as follows:

AUO Chart AUO data by YCharts

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