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STMicroelectronics’ stock gains despite Q1 results miss

STMicroelectronics (NYSE: STM) missed market expectations on revenue and earnings for the first quarter of 2019. Despite the miss, the stock was up 1.65% in morning hours on Wednesday. Net revenues fell 6.7% year-over-year to $2.08 billion, hurt by lower sales in Microcontrollers and Memories as well as Analog and Imaging. Sales to OEMs and […]

April 24, 2019 2 min read

STMicroelectronics (NYSE: STM) missed market expectations on revenue and earnings for the first quarter of 2019. Despite the miss, the stock was up 1.65% in morning hours on Wednesday. Net revenues fell 6.7% year-over-year to $2.08 billion, hurt by lower sales in Microcontrollers and Memories as well as Analog and Imaging. Sales to OEMs and […]

· April 24, 2019

STMicroelectronics (NYSE: STM) missed market expectations on revenue and earnings for the first quarter of 2019. Despite the miss, the stock was up 1.65% in morning hours on Wednesday.

Net revenues fell 6.7% year-over-year to $2.08 billion, hurt by lower sales in Microcontrollers and Memories as well as Analog and Imaging. Sales to OEMs and Distribution decreased 2.4% and 13.9% respectively, on a year-over-year basis.

Net income fell by 25% year-over-year to $178 million while diluted EPS dropped by 23% to $0.20.

Looking at the quarterly performance by product group, revenues increased 10.5% year-over-year in the Automotive and Discrete Group, helped by increases in both the Automotive and Power Discrete units.

The Analog, MEMS and Sensors Group saw a 15.7% decrease in revenues year-over-year, as growth in MEMS was offset by double-digit declines in Analog and Imaging. The Microcontrollers and Digital ICs Group also posted a year-over-year decrease in revenues of 17.7%, with growth in Digital ICs offset by double-digit decreases in Microcontrollers and Memories.

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Also read: STMicroelectronics Q4 2018 Earnings 

At the end of the quarter, inventory was $1.77 billion while day sales of inventory was 124 days. Capex totaled $322 million, down from $351 million last year.

For the second quarter of 2019, STMicroelectronics expects net revenues to grow about 2.4% sequentially. Gross margin is expected to be about 38.5%.

For the full year of 2019, the company expects net revenues of about $9.45 billion to $9.85 billion. STMicroelectronics plans for strong sequential growth in the second half of the year versus the first half, across the Industrial, Automotive and Personal Electronics end-markets.

 

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