- STMicroelectronics shares are down almost 14% today after Q3 earnings report
- Wall Street sells company shares after mixed future business outlook, despite 'healthy quarter'
- STMicroelectronics shares are down almost 14% today after Q3 earnings report
- Wall Street sells company shares after mixed future business outlook, despite 'healthy quarter'
Shares of STMicroelectronics (STM.US) fell nearly 14% after the semiconductor manufacturer issued a weaker-than-expected revenue forecast for the fourth quarter of 2025. Despite a solid rebound in the third quarter, the outlook signals persistent challenges across key markets, particularly in the automotive and industrial sectors.
Third Quarter Results
-
Net revenue for the third quarter reached $3.19 billion, down 2% year-over-year, but up 15.2% quarter-over-quarter, exceeding market expectations.
-
Non-GAAP EPS declined 21.6% year-over-year to $0.29, yet jumped 383% from the previous quarter, indicating a strong sequential recovery.
-
The company reported a clear operating turnaround — from an operating loss of $133 million in Q2 to operating income of $180 million in Q3.
Segment Performance
-
Analog, MEMS & Sensors (AM&S) – revenue rose 7% YoY to $1.43 billion, mainly driven by the Imaging segment.
-
Microcontrollers, Digital ICs & RF (MDRF) – up 5.3% YoY to $1.32 billion, reflecting stable demand.
-
Power & Discrete (P&D) – down 34.3% YoY to $429 million, weighed by weakness in the industrial and power sectors.
-
The book-to-bill ratio indicates continued but moderating demand in automotive and industrial markets.
Outlook and Strategic Direction
-
STMicro expects full-year 2025 revenue of $11.75 billion, slightly below the analysts’ consensus of $11.79 billion.
-
For the fourth quarter, the company projects revenue of $3.28 billion, compared to market expectations of $3.38 billion.
-
CEO Jean-Marc Chery reaffirmed the company’s strategic priorities, which include:
-
Accelerating innovation across key product lines,
-
Restructuring manufacturing operations and optimizing costs to achieve targeted savings,
-
Strengthening free cash flow generation.
-
STMicro’s focus on cost discipline and reduced capital spending reflects prudent management amid challenging market conditions but may also limit growth potential in 2025. Investors remain concerned that demand recovery in automotive and industrial segments could take longer than anticipated, explaining Thursday’s sharp share price decline.
Source: xStation5
Stock of the Week - Merck & Co Inc (23.10.2025)
Beyond Meat after the sell-off📉Is short squeeze still possible?
Banco Macro gains 5% amid US Treasury help to Argentine peso đź—˝
US Open: Mixed sentiments on Wall Street đź“ŠIBM loses, Honeywell surges 7%
The material on this page does not constitute as financial advice and does not take into account your level of understanding, investment objectives, financial situation or any other particular needs.
All the information provided, including opinions, market research, mathematical results and technical analyses published on the website or transmitted to you by other means is provided for information purposes only and should in no event be interpreted as an offer of, or solicitation for, a transaction in any financial instrument, nor should the information provided be construed as advice of legal or fiscal nature.
Any investment decisions you make shall be based exclusively on your level of understanding, investment objectives, financial situation or any other particular needs. Any decision to act on information published on the website or transmitted to you by other means is entirely at your own risk. You are solely responsible for such decisions.
If you are in doubt or are not sure that you understand a particular product, instrument, service, or transaction, you should seek professional or legal advice before trading.
Investing in OTC Derivatives carries a high degree of risk, as they are leveraged based products and often small movements in the market could lead to much larger movements in the value of your investment and this could work against you or for you. Please ensure that you fully understand the risks involved, taking into account your investments objectives and level of experience, before trading, and if necessary, seek independent advice.
