Overview
- STMicroelectronics forecast fourth-quarter revenue of about $3.28 billion, coming in below LSEG consensus expectations.
- Third-quarter net revenue was $3.19 billion, slightly ahead of estimates, but profitability eroded with gross margin down 460 basis points to 33.2%.
- The company booked $37 million in impairment and restructuring costs tied to a program to reshape its manufacturing footprint.
- Management cut 2025 capital expenditure to slightly below $2 billion, citing current market conditions and lower factory utilization.
- Shares dropped after the update, with losses reported in early European trading and roughly 9% declines in U.S. premarket activity, as investors weighed ongoing weakness in power and discrete products and a cautious outlook despite a book-to-bill above one.