STMicroelectronics reported net revenues of $3.25 billion for the third quarter ended September 28, 2024, marking a 26.6% decrease year-over-year, though it increased 0.6% sequentially. Gross margin for the quarter stood at 37.8%, a decline of 980 basis points compared to the year-ago period, primarily due to product mix, sales prices, and higher unused capacity charges.
The company's operating income decreased by 69.3% year-over-year to $381 million, resulting in an operating margin of 11.7%. Net income for the quarter was $351 million, with diluted earnings per share of $0.37. Net capital expenditures for the quarter were $565 million, and days sales of inventory stood at 130 days.
For the full year 2024, STMicroelectronics now expects total revenue to be at the low end of its previously revised guidance range of $13.2 billion to $13.7 billion, which is a further reduction from the initial forecast of $15.9 billion to $16.9 billion. This marks the third cut to the outlook this year, reflecting persistent weakness in industrial and automotive markets.
Looking ahead to the fourth quarter of 2024, STMicroelectronics provided guidance for net revenues of $3.17 billion, plus or minus 350 basis points. The projected gross margin is approximately 33.5%, plus or minus 200 basis points, which includes about 340 basis points of unused capacity charges.
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