STMicroelectronics Meets on the Top Line, Misses Where it Counts

STMicroelectronics (NYSE: STM  ) reported earnings on July 22. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended June 29 (Q2), STMicroelectronics met expectations on revenues and missed expectations on earnings per share.

Compared to the prior-year quarter, revenue dropped. Non-GAAP loss per share increased. GAAP loss per share grew.

Gross margins contracted, operating margins increased, net margins shrank.

Revenue details
STMicroelectronics booked revenue of $2.05 billion. The 11 analysts polled by S&P Capital IQ looked for revenue of $2.07 billion on the same basis. GAAP reported sales were the same as the prior-year quarter's.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
EPS came in at -$0.06. The three earnings estimates compiled by S&P Capital IQ forecast $0.00 per share. Non-GAAP EPS were -$0.06 for Q2 compared to -$0.05 per share for the prior-year quarter. GAAP EPS were -$0.17 for Q2 against -$0.08 per share for the prior-year quarter.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 32.9%, 140 basis points worse than the prior-year quarter. Operating margin was -3.1%, 430 basis points better than the prior-year quarter. Net margin was -7.4%, 390 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)

Looking ahead
Next quarter's average estimate for revenue is $2.12 billion. On the bottom line, the average EPS estimate is $0.07.

Next year's average estimate for revenue is $8.39 billion. The average EPS estimate is $0.04.

Investor sentiment

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on STMicroelectronics is outperform, with an average price target of $10.42.

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