STMicroelectronics Misses on Revenues but Beats on EPS

Seth Jayson, The Motley Fool
Updated

STMicroelectronics (NYS: STM) reported earnings on Jan. 23. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Dec. 31 (Q4), STMicroelectronics missed on revenues and beat expectations on earnings per share.

Compared to the prior-year quarter, revenue dropped significantly, and earnings per share dropped to a loss.

Margins dropped across the board.

Revenue details
STMicroelectronics booked revenue of $2.2 billion. The nine analysts polled by S&P Capital IQ anticipated revenue of $2.2 billion. Sales were 23% lower than the prior-year quarter's $2.8 billion.

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Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.

EPS details
EPS came in at -$0.01. The one earnings estimate compiled by S&P Capital IQ averaged -$0.02 per share. GAAP EPS were -$0.01 for Q4 against $0.24 per share for the prior-year quarter.

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Source: S&P Capital IQ. Quarterly periods. Figures may be non-GAAP to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 33.4%, 650 basis points worse than the prior-year quarter. Operating margin was -5.6%, 1,410 basis points worse than the prior-year quarter. Net margin was -0.5%, 820 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $2.1 billion. On the bottom line, the average EPS estimate is -$0.02.

Next year's average estimate for revenue is $9.9 billion. The average EPS estimate is $0.55.

Investor sentiment
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on STMicroelectronics is hold, with an average price target of $7.06.

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At the time thisarticle was published Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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