The chart below shows how STM performed 10 days before and after its earnings report, based on data from the past quarters. Typically, STM sees a +4.93% change in stock price 10 days leading up to the earnings, and a -0.67% change 10 days following the report. On the earnings day itself, the stock moves by -2.51%. This data can give you a slight idea of what to expect for the next quarter's release.
Positive
Q3 Net Revenues Alignment: Q3 net revenues of $3.25 billion were in line with the midpoint of our business outlook range.
Gross Margin Performance: Q3 gross margin of 37.8% was broadly in line with guidance.
Customer Order Bookings Increase: During the quarter, customer order bookings were slightly up versus Q2.
Dividends and Share Buyback: ST paid $80 million of cash dividends to stockholders and executed a $92 million share buyback under our current share repurchase program.
Net Financial Position Overview: ST's net financial position of $3.18 billion as of September 28, 2024, reflected total liquidity of $6.3 billion.
Negative
Revenue Decline Analysis: Q3 net revenues decreased 26.6% year-over-year, mainly driven by a decline in Industrial and lower extent in Automotive.
Gross Margin Decline: Gross margin decreased to 37.8% from 47.6% in the same quarter last year, primarily due to product mix and to lesser extent, sales price and higher unused capacity charges.
Operating Margin Decline: Operating margin decreased to 11.7% from 28% in the year-ago period, reflecting a significant drop in profitability.
Net Income Decline: Net income decreased around 68% to $351 million compared to $1.09 billion in the year-ago quarter, indicating severe profitability challenges.
Earnings Per Share Decline: Earnings per diluted share decreased to $0.37 compared to $1.16, reflecting a substantial decline in earnings capacity.
STMicroelectronics N.V. (STM) Q3 2024 Earnings Call Transcript
STM.N
-2.23%