PR No: C3290C
STMicroelectronics Reports 2024 Third Quarter Financial Results
- Q3 net revenues $3.25 billion; gross margin 37.8%; operating margin 11.7%; net income $351 million
- YTD net revenues $9.95 billion; gross margin 39.9%; operating margin 13.1%; net income $1.22 billion
- Business outlook at mid-point: Q4 net revenues of $ 3.32 billion and gross margin of 38 %
- Launch of a new company-wide program to reshape our manufacturing footprint accelerating our wafer fab capacity to 300mm Silicon and 200mm Silicon Carbide and resizing our global cost base
Geneva, October 31, 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 third quarter ended September 28, 2024. This press release also contains non-U.S. GAAP measures (see Appendix for additional information).
ST reported third quarter net revenues of $3.25 billion, gross margin of 37.8%, operating margin of 11.7%, and net income of $351 million or $0.37 diluted earnings per share.
Jean-Marc Chery, ST President & CEO, commented:
- “Q3 net revenues were in line with the midpoint of our business outlook range. Our revenues, compared to our expectations, were higher in Personal Electronics, declined less in Industrial and were lower in Automotive. Q3 gross margin of 37.8% was broadly in line with the mid-point of our business outlook range.”
- “First nine months net revenues decreased 23.5% year-over-year across all reportable segments, particularly in Microcontrollers, which is impacted by a continuing weakness in the Industrial market. Operating margin was 13.1% and net income was $1.22 billion.”
- “Our fourth quarter business outlook, at the mid-point, is for net revenues of $3.32 billion, decreasing year-over-year by 22.4% and increasing sequentially by 2.2%; gross margin is expected to be about 38%, impacted by about 400 basis points of unused capacity charges.”
- “The midpoint of this outlook translates into full year 2024 revenues of about $13.27 billion, representing a 23.2% year-over-year decrease, in the low-end of the range indicated in the previous quarter, and a gross margin slightly below that provided in such indication.”
- “Based on our current customer order backlog and demand visibility, we anticipate a revenue decline between Q4 2024 and Q1 2025 well above normal seasonality.”
- “We are launching a new company-wide program to reshape our manufacturing footprint accelerating our wafer fab capacity to 300mm Silicon (Agrate and Crolles) and 200mm Silicon Carbide (Catania) and resizing our global cost base. This program should result in strengthening our capability to grow our revenues with an improved operating efficiency resulting in annual cost savings in the high triple-digit million-dollar range exiting 2027.”
Quarterly Financial Summary (U.S. GAAP)
| (US$ m, except per share data) | Q3 2024 | Q2 2024 | Q3 2023 | Q/Q | Y/Y |
| Net Revenues | $3,251 | $3,232 | $4,431 | 0.6% | -26.6% |
| Gross Profit | $1,228 | $1,296 | $2,109 | -5.2% | -41.8% |
| Gross Margin | 37.8% | 40.1% | 47.6% | -230 bps | -980 bps |
| Operating Income | $381 | $375 | $1,241 | 1.8% | -69.3% |
| Operating Margin | 11.7% | 11.6% | 28.0% | 10 bps | -1,630 bps |
| Net Income | $351 | $353 | $1,090 | -0.6% | -67.8% |
| Diluted Earnings Per Share | $0.37 | $0.38 | $1.16 | -2.6% | -68.1% |
