By Mauro Orru

STMicroelectronics NV assumes the euro will average 1.03 against the dollar until the end of December, a forecast on which the company is basing its guidance for the fourth quarter.

The European chip maker's forecast is lower than a 1.09 estimate it had made in July for its fiscal third quarter ending Oct. 1.

For the fourth quarter, the company targets net revenue of $4.40 billion at the midpoint, and a gross margin of 47.3%.

"This outlook is based on an assumed effective currency exchange rate of approximately $1.03 = EUR1.00 for the 2022 fourth quarter and includes the impact of existing hedging contracts," the company said.

The euro has been on a steady decline this year as investors girded for Russia to enact a full-blown gas cutoff that many fear will drive the region into a deep recession.

The euro currently trades at $1.0061.

Write to Mauro Orru at mauro.orru@wsj.com; @MauroOrru94

(END) Dow Jones Newswires

October 27, 2022 05:03 ET (09:03 GMT)

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