FX.co ★ STMicroelectronics Q4 Net Income Declines; Net Revenues Down 3.2%

STMicroelectronics N.V. (STM), experienced a drop in its net income for the fourth quarter, decreasing to $1.08 billion from $1.25 billion in the same quarter the previous year. Earnings per share likewise decreased, falling to $1.14 compared to $1.32. Eight different analysts surveyed by Thomson Reuters had anticipated the company to declare a profit per share of $0.95 for that quarter. Yet, these estimates typically neglect unpredictable special items.

The company's net revenues in the fourth quarter amounted to $4.28 billion, signifying a year-over-year decrease of 3.2%. Although the revenues from the company's Automotive and Discrete Group (ADG) segment increased by 21.5%, the Analog, MEMS and Sensors Group (AMS) and the Microcontrollers and Digital ICs Group (MDG) experienced decreases of 25.8% and 11.5% respectively. The average revenue predicted by analysts for the quarter was $4.3 billion.

Looking forward, for the first quarter, STMicroelectronics expects net revenues to be in the region of $3.6 billion, signifying a 15.9% sequential decrease, with a variation of plus or minus 350 basis points. The company also estimates a gross margin of 42.3%, with a possible variance of plus or minus 200 basis points.