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%.
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 () 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.