STMicroelectronics Expects Q2 Net Revenues To Be $3.2B (Vs. Consensus Of $3.8B); Sees Gross Margin Of 40%, Plus Or Minus 200 Bps
Portfolio Pulse from Benzinga Newsdesk
STMicroelectronics (STM) forecasts Q2 net revenues of $3.2B, below the consensus of $3.8B, with a gross margin of 40%, plus or minus 200 basis points. This guidance reflects a sequential decrease of 7.6% in revenues and is based on an assumed exchange rate of $1.08 = €1.00, including the impact of existing hedging contracts.
April 25, 2024 | 5:22 am
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STMicroelectronics expects Q2 revenues to fall short of consensus at $3.2B with a 40% gross margin, indicating a potential revenue decline.
STM's lower than expected revenue forecast for Q2, compared to the consensus, suggests a potential short-term negative impact on its stock price. The guidance indicates a sequential revenue decrease of 7.6%, which could lead to investor concern over the company's growth trajectory and profitability, especially given the specific mention of a gross margin of 40%, plus or minus 200 basis points. This detailed financial guidance, including the expected impact of currency exchange rates and hedging, underscores the challenges STM faces, potentially affecting investor sentiment and stock performance in the short term.
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