STMicroelectronics trims 2024 revenue outlook again
FILE PHOTO: The logo of electronics and semiconductors manufacturer STMIcroelectronics is seen outside a company building in Montrouge, near Paris, France, July 12, 2022. REUTERS/Sarah Meyssonnier/File Photo
:European chipmaker STMicroelectronics on Thursday said its full-year revenue would come at the low end of the earlier guidance range, its third cut to the outlook this year amid weak demand from its industrial clients.
Automotive semiconductor companies like STMicroelectronics, Texas Instruments and Melexis are facing weakness in industrial markets as customers cut orders due to high inventories and falling car demand.
The company, whose clients include Tesla and Apple, said it expected to post annual revenue of $13.27 billion, against its previous forecast of $13.2 billion to $13.7 billion, last lowered in July.
Analysts polled by LSEG were expecting revenue of $13.26 billion for the full year.
"Based on our current customer order backlog and demand visibility, we anticipate a revenue decline between Q4 2024 and Q1 2025 well above normal seasonality," Europe's biggest chipmaker by revenue said in the statement.
However, STMicroelectronics beat market expectations for third-quarter earnings before interest and tax (EBIT), which fell 69.3 per cent from a year earlier to $381 million, while analysts were expecting $321 million on average, according to LSEG.
Quarterly revenue fell 26.6 per cent to $3.25 billion, broadly in line with analysts' estimate of $3.24 billion.
