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STMicroelectronics Slumps 13% as Profit Falls and Outlook Disappoints

Softer guidance alongside below-target margins spooked investors.

Overview

  • Shares closed down 13.26% at $25.26 after the company reported third-quarter results.
  • Net income fell 32.3% year over year to $237 million, reflecting weaker profitability.
  • Net revenues declined about 2% to $3.187 billion, slightly above the company’s midpoint expectation.
  • Despite topping revenue expectations, the gross margin of 33.2% came in below the company’s long-term target.
  • Management guided to $11.75 billion in 2025 revenue and $3.28 billion for the fourth quarter, and the CEO emphasized priorities to accelerate innovation, reshape manufacturing, and resize the global cost base.