Categories Earnings, Technology

STMicroelectronics beats industry headwinds, stock jumps 6%

Shares of STMicroelectronics (NYSE: STM) shot up 6% during the pre-market hours on Thursday after the semiconductor giant reported third quarter results that were stronger than the analysts’ projections.

The company said its third quarter earnings fell to 34 cents per share, from 41 cents per share last year. However, this was 5 cents higher than the street consensus.

Despite the softness in the legacy automotive and industrial market, revenues inched up 1.2% to $2.55 billion, driven by its new products. Analysts had, on an average, expected $2.5 billion. Sales to OEMs increased 7.2%, while Distribution decreased 11.6%.

READ: PayPal jumps on upbeat Q3, becomes China’s maiden foreign payments platform

The top-line was driven by a 7.7% growth in the Analog, MEMS and Sensors Group (AMS). The company’s other two segments – Automotive and Discrete Group (ADG) and Microcontrollers and Digital ICs Group (MDG) were down year-over-year.


For the fourth quarter, STMicroelectronics expects net income to grow 5.0% sequentially, plus or minus 350 basis points. Gross margin is expected around 38.2%, plus or minus 200 basis points.

STM stock has gained 50% since the beginning of this year.

Earlier this week, rival Texas Instruments Incorporated (NASDAQ: TXN) reported a 9% decrease in earnings for the third quarter of 2019 due to broad-based weakness in the overall demand of its product portfolio as well as macro-environment uncertainty. 

Browse through our earnings calendar and get all scheduled earnings announcements, analyst/investor conference and much more!

Most Popular

Stock Watch: Is Darden Restaurants a good buy after earnings?

After a prolonged slowdown, the restaurant industry is returning to normal patterns but macroeconomic uncertainties and high inflation are currently playing spoilsport for it. While the pandemic-related slump forced many

Lennar (LEN) believes that despite near-term challenges, the long-term prospects for housing remain strong

Shares of Lennar Corporation (NYSE: LEN) were down 3% on Monday. The stock has dropped 36% year-to-date and 25% over the past 12 months. The homebuilder delivered mixed results for

KB Home (KBH): What did and did not work for the homebuilder in the third quarter

Shares of KB Home (NYSE: KBH) were up slightly on Friday. The stock has dropped 40% year-to-date and 35% over the past 12 months. The company delivered mixed results for

Add Comment
Viewing Highlight