STMicroelectronics Revenue, Gross Margin Slightly Miss 4Q Target
January 25 2024 - 2:01AM
Dow Jones News
By David Sachs
STMicroelectronics' said that fourth-quarter revenue and gross
margin came in slightly below its expectations, with gains in
personal electronics offset by slower growth in the automotive
business.
The European chip maker said Thursday that net revenue fell 3.2%
to $4.28 billion compared to the same quarter a year ago, slightly
below its target of $4.30 billion. Analysts had also expected $4.30
billion in sales, according to Factset.
"In Q4, our customer order bookings decreased compared to Q3,"
STMicroelectronics said. "We continued to see stable end-demand in
Automotive, no significant increase in Personal Electronics, and
further deterioration in Industrial."
Gross profit, a closely watched metric for the company, fell
7.3% to $1.95 billion with a gross margin of 45.5%, down from
47.5%. The company had expected a gross margin of 46% in the fourth
quarter.
Net profit fell 14% to $1.08 billion in the fourth quarter. The
firm was expected to post net profit of $903 million, according to
a Factset poll of 14 analysts.
Operating income decreased 20.5% to $1.02 billion with an
operating margin of 23.9%, down from 29.1%.
The firm's full-year net revenue jumped to $17.29 billion from
$16.13 billion in 2022, meeting its $17.3 billion target. Its Gross
margin finished 2023 at 47.9%, up from 47.3% and in line with its
goal of about 48.1%.
Looking ahead, the chip maker set a target of between $15.9
billion and $16.9 billion in revenue for 2024 with a gross margin
percentage in the low-to-mid 40s, it said.
For the first quarter, it is targeting net revenue of $3.6
billion and a gross margin of 42.3%. The outlook is dependent on
currency exchange rates and includes the impact of hedging
contracts, the company said.
STMicroelectronics said it will invest about $2.5 billion
capital expenditures in 2024, it said.
Write to David Sachs at david.sachs@wsj.com
(END) Dow Jones Newswires
January 25, 2024 01:46 ET (06:46 GMT)
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