Netherlands' STMicroelectronics slightly beats Q3 revenue estimates on strength in CECP and personal electronics segments
Overview
Netherlands-based semiconductor maker's Q3 revenue up 17.9% yr/yr, slightly beating analyst expectations
Q3 adjusted EPS was $0.31; no analyst estimate provided for comparison
Q3 operating income missed analyst expectations
Outlook
STMicroelectronics expects Q4 net revenues of $4.15 bln, up 10.5% sequentially
Company sees Q4 gross margin at 39.0%
STMicroelectronics forecasts FY26 revenue of about $14.5 bln and gross margin of 36.4%
Result Drivers
SEGMENT GROWTH - Co said higher revenues in CECP and Personal Electronics drove Q3 results, per CEO Jean-Marc Chery
GROSS MARGIN IMPROVEMENT - Co attributed higher gross margin to lower unused capacity charges and improved product mix
DEMAND RECOVERY - Co said increased demand and strong bookings supported ongoing recovery across markets
Company press release:
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q3 Revenue | Slight Beat* | $3.76 bln | $3.73 bln (12 Analysts) |
Q3 EPS | $0.31 | ||
Q3 Net Income | $291 mln | ||
Q3 Gross Margin | 37.30% | ||
Q3 Operating Income | Miss | $367 mln | $401.12 mln (10 Analysts) |
Q3 EBIT Margin | 9.80% |
*Applies to a deviation of less than 1%; not applicable for per-share numbers.
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 14 "strong buy" or "buy", 3 "hold" and 1 "sell" or "strong sell"
The average consensus recommendation for the semiconductors peer group is "buy"
Wall Street's median 12-month price target for STMicroelectronics N.V. is €69.00, about 59.1% above its October 28 closing price of €43.37
The stock recently traded at 20 times the next 12-month earnings vs. a P/E of 37 three months ago
Reuters Recommended Reads
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Oct 28 - Chip gear maker KLA's Q1 revenue beats analyst estimates on AI demand
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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)