STMicroelectronics Q2 Profit Drops; Sees Sequential Revenue Growth Of 17.4% In Q3

(RTTNews) - STMicroelectronics (STM) reported that its second-quarter net income attributable to parent company dropped to $90 million or $0.10 per share from $160 million or $0.18 per share year-ago quarter. Analysts polled by Thomson Reuters expected the company to report earnings of $0.08 per share for the quarter. Analysts' estimates typically exclude special items.

Net revenues for the second-quarter were $2.09 billion, representing a year-over-year decrease of 4.0%. Analysts expected revenue of $2.0 billion for the quarter.

On a year-over-year basis, the company recorded lower sales in Imaging, Automotive, and MEMS, partially offset by higher sales in Microcontrollers, Digital, Analog and Power Discrete.

Looking for the third quarter, the company expects net revenues to be $2.45 billion, an increase of 17.4% sequentially, plus or minus 350 basis points. Analysts expect third-quarter net revenues of $2.29 billion. Gross margin is expected to be 36.0% at the mid-point, including about 200 basis points of unsaturation charges.

STMicroelectronics said it will drive the company based on an updated plan for fiscal year 2020 net revenues between $9.25 billion and $9.65 billion with growth in the second half over the first half to be in the range of $610 million to $1.01 billion. The company expects this growth to be driven by engaged customer programs, new products and improved market conditions.

CAPEX plan for 2020 is now about $1.2 billion.