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Netherlands' STMicroelectronics slightly beats Q3 revenue estimates on strength in CECP and personal electronics segments

By Reuters News


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

  • Oct 27 - Netherlands' ASM International Q3 revenue jumps on strong growth in memory sales

  • Oct 27 - Netherlands' NXP Semiconductors Q3 revenue rises 19%, slightly beats estimates

  • Oct 28 - Chip gear maker KLA's Q1 revenue beats analyst estimates on AI demand


For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.


(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.)

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