STMicroelectronics Reports 2024 Second Quarter Financial Results
- Q2 net revenues $3.23 billion; gross margin 40.1%; operating margin 11.6%; net income $353 million
- H1 net revenues $6.70 billion; gross margin 40.9 %; operating margin 13.8%; net income $865 million
-
Business outlook at mid-point: Q3 net revenues of $
3.25
billion and gross margin of 38%
Geneva, July 25, 2024 – STMicroelectronics N.V. (“ST”) (NYSE: STM), a global semiconductor leader serving customers across the spectrum of electronics applications, reported U.S. GAAP financial results for the second quarter ended June 29, 2024. This press release also contains non-U.S. GAAP measures (see Appendix for additional information).
ST reported second quarter net revenues of $3.23 billion, gross margin of 40.1%, operating margin of 11.6%, and net income of $353 million or $0.38 diluted earnings per share.
Jean-Marc Chery, ST President & CEO, commented:
- “Q2 net revenues were above the midpoint of our business outlook range driven by higher revenues in Personal Electronics, partially offset by lower than expected revenues in Automotive. Gross margin was in line with expectations.”
- “First half net revenues decreased 21.9% year-over-year, mainly driven by a decrease in Microcontrollers and Power and Discrete segments. Operating margin was 13.8% and net income was $865 million.”
- “During the quarter, contrary to our prior expectations, customer orders for Industrial did not improve and Automotive demand declined.”
- “Our third quarter business outlook, at the mid-point, is for net revenues of $3.25 billion, decreasing year-over-year by 26.7% and increasing sequentially by 0.6%; gross margin is expected to be about 38%, impacted by about 350 basis points of unused capacity charges.”
- “We will now drive the Company based on a plan for FY24 revenues in the range of $13.2 billion to $13.7 billion. Within this plan, we expect a gross margin of about 40%.”
Quarterly Financial Summary (U.S. GAAP)
| (US$ m, except per share data) | Q2 2024 | Q1 2024 | Q2 2023 | Q/Q | Y/Y |
| Net Revenues | $3,232 | $3,465 | $4,326 | -6.7% | -25.3% |
| Gross Profit | $1,296 | $1,444 | $2,119 | -10.2% | -38.9% |
| Gross Margin | 40.1% | 41.7% | 49.0% | -160 bps | -890 bps |
| Operating Income | $375 | $551 | $1,146 | -32.0% | -67.3% |
| Operating Margin | 11.6% | 15.9% | 26.5% | -430 bps | -1,490 bps |
| Net Income | $353 | $513 | $1,001 | -31.2% | -64.8% |
| Diluted Earnings Per Share | $0.38 | $0.54 | $1.06 | -29.6% | -64.2% |
