STMicroelectronics Cuts Sales Guidance Amid Automotive Market Slowdown
By Mauro Orru
STMicroelectronics lowered its sales forecasts for the year after posting revenue below analysts' expectations for the first quarter amid a slowdown in demand for chips in the automotive sector.
The European chip maker said Thursday that it now expects revenue of $14 billion to $15 billion this year, compared with a previous range of $15.9 billion to $16.9.
The move comes after revenue in the first quarter slumped 18% to $3.47 billion. Analysts had forecast revenue of $3.61 billion, according to consensus estimates compiled by Visible Alpha.
Net profit plunged to $513 million from $1.04 billion. Gross profit--a closely watched metric for companies operating in the semiconductor industry--fell to $1.44 billion from $2.11 billion, generating a 41.7% gross margin.
STMicroelectronics had expected first-quarter revenue of $3.6 billion, and a gross margin of roughly 42.3%.
For the second quarter, the company is targeting revenue of $3.2 billion and a gross margin of 40%.
Write to Mauro Orru at mauro.orru@wsj.com
(END) Dow Jones Newswires
April 25, 2024 01:32 ET (05:32 GMT)
Copyright (c) 2024 Dow Jones & Company, Inc.-
What’s Happening in the Markets This Week
-
Worst-Performing Stock ETFs of the Quarter
-
Q3 in Review and Q4 2024 Market Outlook
-
Top-Performing Stock ETFs of the Quarter
-
September Jobs Report Forecasts Show Moderate Hiring Gains
-
Port Strike a Headache for Shippers but a Potential Tailwind for Certain US Transport Stocks
-
13 Charts on Q3′s Roller-Coaster Rally for Stocks and Bonds
-
5 Stocks to Buy Instead of Overpriced US Equities
-
Consumer Defensives: Despite Angst, Thirsty Investors Have Names to Pursue
-
Industrials: Many Stocks Overvalued After Q3 Outperformance
-
Basic Materials: Despite Index Rise, We See Multiple Long-Term Opportunities
-
What the Election Could Mean for Big Tech Stocks
-
3 Lessons From Recent Stock Market Drama
-
Consumer Cyclicals: Even Amid Moderating Consumer Spending, We See Discounts
-
Healthcare: Valuations Look Fair Overall, With Select Industries Still Undervalued
-
Utilities: Falling Interest Rates, Growth Outlook Boosting Stocks