STMicroelectronics Lowers Its 2024 Outlook: Now Expects Net Revenues Of $14B-$15B (Prior $15.9B-$16.9B) Vs. Consensus Of $16.12B; Sees Gross Margin In The Low 40's range
Portfolio Pulse from Benzinga Newsdesk
STMicroelectronics has revised its 2024 revenue outlook downwards to $14B-$15B from the previous forecast of $15.9B-$16.9B, below the consensus estimate of $16.12B. The company also expects a gross margin in the low 40's range but plans to maintain its net capital expenditure (Capex) for FY24 at approximately $2.5 billion, focusing on strategic manufacturing initiatives.

April 25, 2024 | 5:26 am
News sentiment analysis
Sort by:
Ascending
NEGATIVE IMPACT
STMicroelectronics lowers its 2024 revenue outlook to $14B-$15B from previously forecasted $15.9B-$16.9B, with a gross margin in the low 40's range, while maintaining FY24 net Capex at $2.5B.
The downward revision of the revenue outlook by STMicroelectronics is likely to negatively impact investor sentiment and the stock price in the short term. Lower than expected revenue forecasts, especially when they fall below consensus estimates, typically lead to a decrease in stock price as investors adjust their expectations. The maintenance of net Capex indicates the company's commitment to its strategic initiatives, which might mitigate some negative sentiment, but the primary focus for short-term impact is the reduced revenue outlook.
CONFIDENCE 90
IMPORTANCE 90
RELEVANCE 100