STMicroelectronics Report
- Third Quarter Forecast:
- Expected net revenue: $3.25 billion (below the estimate of $3.56 billion)
- Expected gross margin: 38% (below the estimate of 40.9%)
- Second Quarter Results:
- Gross margin: 40.1% (estimate: 40%)
- Net income: $353 million (above the estimate of $313.4 million)
- Net revenue: $3.23 billion (slightly above the estimate of $3.2 billion)
- Operating income: $375 million (above the estimate of $360 million)
- Operating margin: 11.6% (above the estimate of 10.5%)
- EPS: 38 cents per share (above the estimate of 34 cents)
- Capital expenditure: $546 million (below the estimate of $590.4 million)
- Revenue by Segment (Second Quarter):
- Analog, Power & Discrete, MEMS and Sensors: $1.91 billion (estimate: $1.89 billion)
- Microcontrollers, Digital ICs and RF products: $1.32 billion (estimate: $1.33 billion)
- Management Comments:
- Second quarter net revenues exceeded midpoint outlook due to strong Personal Electronics performance, despite weaker Automotive revenues.
- First half net revenues decreased by 21.9% year-over-year, primarily due to declines in the Microcontrollers and Power and Discrete segments.
- Third quarter revenue outlook suggests a year-over-year decrease of 26.7% and a sequential increase of 0.6%, with a gross margin hit by unused capacity charges.
- Full-year 2024 revenue guidance: $13.2 billion to $13.7 billion.
- Analyst Ratings:
- 19 buys
- 6 holds
- 0 sells
A look at STMicroelectronics Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 3 | |
| Dividend | 2 | |
| Growth | 5 | |
| Resilience | 5 | |
| Momentum | 3 | |
| OVERALL SMART SCORE | 3.6 |
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
STMicroelectronics N.V. is poised for a promising long-term future, as indicated by its Smartkarma Smart Scores. With a top score of 5 in Growth and Resilience, the company demonstrates strong potential for expansion and the ability to withstand market challenges. This positions STMicroelectronics well for sustained success in the semiconductor industry.
Despite not scoring as high in Value and Dividend, with scores of 3 and 2 respectively, STMicroelectronics‘ impressive momentum score of 3 showcases its upward trajectory. As a leading provider of semiconductor integrated circuits and discrete devices across various sectors, including telecommunications, consumer electronics, automotive, and more, STMicroelectronics is strategically positioned to capitalize on its diverse market presence in North America, Europe, and the Asia Pacific region.
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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