Third Quarter Financial Results
STMicroelectronics, the Italian-French semiconductor giant, recently published its third-quarter results, revealing a significant decline in various financial indicators. Net revenues were 3.25 billion dollars, a decrease of 26.6% compared to the same period of the previous year.
This decline was accompanied by a gross margin that fell from 47.6% to 37.8%, and a net profit that contracted by 67.8% to 351 million dollars.
Performance analysis by sector
Although the overall results were lower than expected, with the Bloomberg consensus forecasting revenues of 3.24 billion and profits of 297.8 million, STMicroelectronics showed different performances depending on the sectors. The president and CEO, Jean-Marc Chery, commented that revenues in the Personal Electronics division exceeded expectations, while the Industrial sector recorded a smaller decline. On the contrary, the Automotive sector showed lower results than expected.
Forecasts for the fourth quarter and beyond
Looking to the future, STMicroelectronics expects net revenues of 3.32 billion dollars for the fourth quarter, a decrease of 22.4% compared to the previous year, but with an increase of 2.2% compared to the previous quarter. The gross margin is expected to be around 38%, but with a significant impact due to the charges for underutilization of production capacity. Chery also indicated that forecasts for the full year 2024 suggest revenues of approximately 13.27 billion dollars, corresponding to a decrease of 23.2% compared to the previous
year.
These results and forecasts raise questions about STMicroelectronics’ ability to adapt to market challenges and to remain competitive in a constantly evolving sector. The quarterly season continues to be a crucial moment for investors and analysts, who closely observe the performance of companies in the context of a changing global economy
.