STMicroelectronics: Q3 2024 Financial Overview and Outlook

Stmicroelectronics N.V. ( (STM) ) has released its Q3 earnings. Here is a breakdown of the information Stmicroelectronics N.V. presented to its investors.

STMicroelectronics N.V. is a leading global semiconductor company providing innovative solutions across various electronics applications, focusing on sectors like automotive, industrial, and personal electronics. The company is known for its emphasis on sustainability and technological advancement, aiming for carbon neutrality by 2027.

In the third quarter of 2024, STMicroelectronics reported net revenues of $3.25 billion with a gross margin of 37.8% and an operating margin of 11.7%. The company’s net income for the quarter was $351 million. Despite a year-over-year decline in net revenues by 26.6%, the company maintained revenue levels in line with expectations, particularly in the Personal Electronics segment.

Key financial highlights include a 23.5% drop in net revenues over the first nine months of 2024 compared to the previous year, with significant declines in the Microcontrollers segment due to industrial market weaknesses. The operating margin for this period was 13.1%, and net income stood at $1.22 billion. The company is undertaking a strategic program to reshape its manufacturing capabilities, focusing on expanding wafer fab capacity and optimizing its cost base for improved efficiency and cost savings.

Looking ahead, STMicroelectronics projects modest sequential revenue growth for the fourth quarter of 2024, estimated at $3.32 billion with a gross margin target of 38%. The company remains cautious about the future, anticipating a revenue decline exceeding normal seasonal variations between the fourth quarter of 2024 and the first quarter of 2025. Management is committed to implementing strategic initiatives to strengthen its market position and operational efficiency.