Tech News: STMicroelectronics Q2 Net Income Plummets 64%, Stock Drops Over 15%!

In a significant On July 25th, 意法半导体 has announced its financial results for the second quarter of 2024, revealing significant declines in both revenue and net income compared to the previous year. This disappointing performance led to a 15.35% drop in ST's stock price on the trading day following the announcement.

For Q2 2024, ST reported net revenue of $3.23 billion, marking a 25% decrease year-over-year. The company's gross margin was 40.1%, with an operating margin of 11.6%. Net income for the quarter fell sharply to $353 million, or $0.38 per diluted share, down 64% from over $1 billion in the same period last year, and a decline of more than 30% compared to Q1 2024.

In the first half of 2024, ST's cumulative net revenue stood at $6.70 billion, reflecting a 21.9% drop compared to the first half of 2023. The gross margin for this period was 40.9%, while the operating margin was 13.8%. Net income totaled $865 million.

Looking ahead, ST's forecast for Q3 2024 suggests a net revenue of approximately $3.25 billion, a 26.7% year-over-year decline but a slight 0.6% increase from Q2 2024. The company expects a gross margin of around 38%, impacted by approximately 350 basis points related to unused capacity costs.

Due to previous inventory excesses and a decline in automotive sales, ST has revised its full-year revenue forecast to $13.2 billion to $13.7 billion, down from an earlier estimate of $14 billion to $15 billion. This marks the second reduction in the company's annual revenue guidance for 2024, following an initial forecast of $16.9 billion in January.

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