(RTTNews) – Chipmaker STMicroelectronics N.V. (STM) reported Thursday that its third-quarter net income fell 67.8 percent to $351 million from last year’s $1.09 billion.
Earnings per share were $0.37, 68.1 percent lower than prior year’s $1.16. Analysts on average expected the company to report earnings of $0.33 per share, according to figures compiled by Thomson Reuters. Analysts’ estimates typically exclude special items.
Net revenues for the quarter dropped 26.6 percent to $3.25 billionf rom last year’s $4.43 billion. The Street was looking for revenues of $3.25 billion.
Looking ahead to its fourth quarter, STMicroelectronics expects, at the mid-point, net revenues of $3.32 billion, decreasing year-over-year by 22.4 percent and increasing sequentially by 2.2 percent. Gross margin is expected to be about 38 percent, impacted by about 400 basis points of unused capacity charges.
For fiscal 2024, the company now expects revenues of about $13.27 billion, representing a 23.2 percent year-over-year decrease, in the low-end of the range indicated in the previous quarter. Gross margin would be slightly below that provided in such indication.
The company previously expected annual revenues in the range of $13.2 billion to $13.7 billion, and gross margin of about 40 percent.
Analysts expect revenues of $3.40 billion for the fourth quarter and $13.37 billion for the year.
Based on current customer order backlog and demand visibility, the company anticipates a revenue decline between the fourth quarter and first quarter of fiscal 2025 well above normal seasonality.
Further, STMicroelectronics announced the launch of a new company-wide program to reshape manufacturing footprint accelerating wafer fab capacity to 300mm Silicon (Agrate and Crolles) and 200mm Silicon Carbide (Catania) and resizing its global cost base.
The program is expected to result in annual cost savings in the high triple-digit million-dollar range exiting 2027.
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Source : Nasdaq