STMicroelectronics Shares Jump on Better-Than-Expected 3Q Revenue
October 01 2020 - 06:50AM
Dow Jones News
By Mauro Orru
STMicroelectronics NV's shares jumped Thursday after the company
said third-quarter revenue should be higher than anticipated,
citing "significantly better-than-expected market conditions."
At 1010 GMT, STMicroelectronics shares traded 6.5% higher at
EUR27.97.
The European chip maker said revenue for the quarter ended Sept.
26 is expected to come in at $2.67 billion, according to
preliminary figures, higher than the $2.45 billion at mid-point it
had previously indicated.
"Sharp acceleration in demand of automotive products and
microcontrollers, as well as our engaged customer programs in
personal electronics, were the main factors that contributed to
this result," said Chief Executive Jean-Marc Chery.
STMicroelectronics also said revenue for the year should be
above $9.65 billion, at the higher end of the range it previously
expected.
Analysts at U.S. bank Citi said the update is positive for the
wider diversified chip makers space, including European peer
Infineon Technologies AG, whose shares traded 7.6% higher at
EUR25.95 at 1010 GMT.
STMicroelectronics' preliminary third-quarter revenue figure is
about 8% ahead of consensus projections of around $2.47 billion and
also above Citi's expectations of $2.45 billion, Citi analysts
said.
STMicroelectronics will publish third-quarter results on Oct.
22.
Write to Mauro Orru at mauro.orru@wsj.com; @MauroOrru94
(END) Dow Jones Newswires
October 01, 2020 06:35 ET (10:35 GMT)
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