Renesas Electronics saw its stock climb sharply on Friday, closing at 2,957.5 yen for a gain of 6.9%. The advance followed the company's disclosure of a significant strategic transaction and the release of its financial forecasts.
Major Divestiture Agreement
The Japanese semiconductor firm has entered into an agreement to transfer its timing business to SiTime in a cash-and-stock deal valued at $3.0 billion. Renesas is set to receive $1.5 billion in cash and approximately 4.13 million shares of SiTime, with the transaction expected to conclude by the end of 2026. The company indicated the sale could result in a one-time gain of around $1.5 billion, though final figures remain subject to change.
Financial Guidance and Performance
For the current quarter ending March 31, Renesas projects revenue to fall between 367.5 billion yen and 382.5 billion yen. The company is targeting a gross margin of 58.5% and an operating margin of 32.0% at the midpoint of its forecast.
For the full year ended December 31, the company reported IFRS revenue of 1.32 trillion yen. On a non-GAAP basis, which excludes certain items, profit attributable to owners was 329.3 billion yen. Segment performance was mixed, with automotive sales declining 9%, while revenue from industrial, infrastructure, and IoT operations increased 5.5%.
The deal and outlook come as investors monitor the health of the global semiconductor sector, which is being driven by investments in artificial intelligence and data centers. However, Renesas noted risks including regulatory approvals for the transaction, potential revisions to terms, and exposure to automotive production volatility and currency fluctuations.
Market attention now turns to the start of trading next week to gauge whether the positive momentum will be sustained. Renesas has scheduled its first-quarter results for April and its annual shareholders' meeting for March.