Home » STM: quarterly due out on April 25th, expectations on the accounts

STM: quarterly due out on April 25th, expectations on the accounts

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STM: quarterly due out on April 25th, expectations on the accounts

This week the quarterly reports of Piazza Affari will come to life with the accounts of, among others, the chip manufacturer STMicroelectronics. The Italian-French company will release the results on Thursday 25 April, before the opening of the Italian Stock Exchange. Analysts predict a drop in revenues and profits for STM, but attention will focus above all on the prospects in the end markets to understand the trend in demand for semiconductors, after the indications received in recent days from giants such as the Taiwanese TSMC and ‘Dutch Asml Holding.

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STM revenues and profits expected to slow in 1Q 2024

The consensus of analysts consulted by Bloomberg indicates for the first three months of the year revenues down 15% year over year at $3.61 billion.

STM’s gross margin is expected to decline to 42.3%, Ebit to 624 million and net profit at 542 millionwith a -48% for both indicators.

At a product level, the ADG (Automotive & Discrete) business unit has estimated revenues of 1.84 billion and an operating income of 529 million. With reference to AMS (Analog, Mems & Sensors) revenues of 813 million and an Ebit of 101 million are expected and as regards MDG (Microcontrollers & Digital Ics) a turnover of 1.03 billion and an operating profit of 211 million.

See also  Resolution 37 of 14/12/2023 - Authorization of expenditure for practical contributions approved by the Environmental and Agricultural Resources Commission in the session of 19 October 2023 updated to the date of 16 November 2023 and in the session of 4 December 2023 and integration of previous resolution no. 57 of 14 November 2023 ''Expenditure authorization for contributions to support the San Marino Cooperative sector recognized by the Environmental and Agricultural Resources Commission in the session of 19 October 2023''

TMSC’s indications on the chip market

In recent days, the semiconductor market landscape has shown mixed signals. TSMC, the Taiwanese giant and main chip supplier for giants such as Nvidia and Apple, released positive financial data, with an increase in revenues of 16.5% and an increase in net profit of 8.9%. Furthermore, it forecast second-quarter revenues that exceeded analysts’ expectations, with revenue forecasts of between $19.6 billion and $20.4 billion, compared to the consensus forecast of $19.1 billion.

However, despite these favorable results, TSMC has scaled back its semiconductor market growth expectations for 2024 – excluding memory chips – to about 10%, a decline from the previous estimate of more than 10%. “Macroeconomic and geopolitical uncertainty persists, potentially weighing on consumer confidence and end-market demand,” Chief Executive CC Wei said.

The weakness for smartphones and PCs continues, AI boom

At the moment, the demand for chips that favor it Development of artificial intelligence is balancing weakness in the smartphone and personal computer markets. However, some investors are expressing concerns about the sustainability of such demand for AI chips in the long term. These doubts have slowed the growth of Nvidia stock, which has seen a reduction of 10% from its previous peak.

This week, ASML Holdingthe leading supplier of advanced extreme ultraviolet lithography machinery needed for chip manufacturing, announced orders far below expectations, with only 3.6 billion euros in the first quarter, compared to estimates of 4.63 billion, due to weak demand for chips for smartphones and PCs. Other companies, such as Intel, will soon announce their financial results and forecasts for the current year.

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