Stmicroelectronics: sealed disappointing margin forecast,: This article explores the topic in depth.
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Stmicroelectronics: sealed disappointing margin forecast. Consequently, :
(BFM Stock Exchange)-The accounts of the Franco-Italian specialist in semiconductors tilted in the red in the first half. Consequently, The forecast of margin in the third quarter is grimacing the scholarship which does not fail to sanction the. Therefore, title this Thursday.
Stmicroelectronics has experienced a beautiful stock market rally. However, with an increase in its title of more than 30% over the last three months. Similarly, The market judged that the group had reached the bottom of the swimming pool in the first quarter. Furthermore, that the best was to come. Therefore,
The company’s management had also brought guarantees of trust during a conference organized by Exane BNP Paribas. Moreover, with positive comments for its second and third quarter accounts. Furthermore, The analysts had stored in the opinion of management, and were optimistic about the orientation of stmicroelectronics: sealed disappointing margin forecast, the accounts of Stmicroelectronics.
Including UBS which explained at the beginning of this month of July. expect reassuring results from the Franco-Italian group of semiconductors in the second quarter.
Was this optimism completely justified? Stmicroelectronics returned its verdict this Thursday, July 24. In the second quarter, the company’s revenues plunged 14.4% over a year but increased by 9.9% compared to the previous quarter to reach $ 2.766 billion.
The company therefore exceeds its own forecasts formulated last April. She was tabling in the middle of the range, on income of 2.71 billion dollars, a drop of 16.2% over a year, but up 7.7% compared to the first quarter.
“The net turnover of the second quarter came out above the median point of our financial perspective range. driven by a higher turnover in personal and industrial electronics, while the automobile was slightly below our stmicroelectronics: sealed disappointing margin forecast, expectations,” said the director general of the company, Jean-Marc Chéry.
Red accounts
The gross margin was established at 33.5% against 40.1% over the same period of 2024 and 33.4% in the previous quarter.
On the other hand. the group’s accounts tip over in the red in the second quarter, after a net profit of $ 56 million in the first quarter. Stmicroelectronics accused a net loss of $ 97 million, linked in particular to depreciations and restructuring charges.
The group is engaged in a restructuring program for its industrial footprint. This project should make it possible to identify savings of “high three-digit in millions”. that is to say more than $ 500 million, by the end of 2027. And translate into 2,800 posts on the basis of volunteering.
By share, the net loss is $ 0.11, against net profit per share of $ 0.38 per share and stmicroelectronics: sealed disappointing margin forecast, $ 0.06 per share in the first quarter.
The company has still not made objectives for 2025, but has delivered its prospects for the third quarter.
The company Table, in the middle of the range, on income of 3.17 billion dollars up 14.6% compared to the second quarter, with a confidence interval of more or less 3.5 percentage points. The company also anticipates a stable gross margin compared to the previous quarter, around 33.5% with a confidence interval of more or less 2 percentage points.
The target on income exceeds consensus that awaited $ 3.05 billion in the third quarter, notes Jefferies. But that on the margin is clearly disappointing. since the analysts were waiting for around 35%
“The weakness of the margin is attributed to a negative impact of 140 basic points linked to monetary fluctuations and the non -recurring costs associated with the company’s cost reduction program,” stmicroelectronics: sealed disappointing margin forecast, adds the design office.
On the Paris Stock Exchange, this disappointment is paid, the group drops 12.7% this Thursday around 9:40 am. The day before, it was Soitec (-7.9%) which had undergone the wrath of the market by delivering a quarterly turnover in decline. too fair forecasts in the eyes of the market.
Sabrina Sadgui – ©2025 BFM Bourse
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