(Reuters) -STMicroelectronics forecast improving earnings for the second quarter on Thursday after its first-quarter earnings, which the chipmaker called the bottom point of the year, met its earlier expectations.
European chipmakers exposed to the automotive and industrial markets, like STMicro, NXP and Siltronic, have faced a multi-year long slump in sales. That led STMicro’s operating income to collapse 99.5% year-on-year in the first quarter.
One of Europe’s largest chipmakers posted quarterly revenue of $2.52 billion, in line with its own forecast of $2.51 billion. Analysts were expecting a similar number according to LSEG.
It expects revenue of $2.71 billion in the second quarter, above analysts’ expectations of $2.62 billion. The outlook does not factor in any impact from potential further changes to global trade tariffs, STMicro said.
“We see Q1 2025 as the bottom, in the current uncertain environment we are focusing on what we can control: keep on innovating to continuously improve and accelerate the competitiveness of our product and technology portfolio,” STMicro’s President and CEO Jean-Marc Chery said in a statement.
STMicro did not provide a full-year guidance.
(Reporting by Nathan Vifflin in Gdansk, editing by Milla Nissi)
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