On July 25th, Caixin News Agency reported that in this week, which can be called the "collective disaster of automotive stocks", well-known automotive semiconductor manufacturer STMicroelectronics is also unable to escape the critical blow. As of press time, the company's US stock market has fallen by 12% before the release of its latest financial report, and today it may directly drop to a new low of nearly a year and a half.
(STMicroelectronics US stock daily chart, source: TradingView)
After experiencing a "6% increase to 6% decrease" for General Motors on Tuesday, a 12% drop for Tesla on Wednesday, and a sharp drop for Ford and Stellantis due to lower than expected financial reports before Thursday's trading session, it is somewhat reasonable for STMicroelectronics to have this disaster.
(Tesla daily chart, source: TradingView)
(Ford Motor Company fell sharply before Thursday's trading session, source: TradingView)
Stellantis may fall to a new low for the year, source: TradingView
In the financial report released by iFlytek on Thursday, revenue decreased by 25.3% year-on-year to $3.23 billion, with net sales for original equipment manufacturers (OEMs) and distributors decreasing by 14.9% and 43.7% respectively. Given the overall revenue decline of 21.9% in the first half of the year, the performance decline in the second quarter has accelerated.
Jean Marc Chery, the President and CEO of the company, stated that this quarter, contrary to the company's expectations, saw no improvement in industrial customer orders and a decline in automotive demand. The net revenue in the second quarter was higher than the median of the previous forecast guidance range, thanks to the increase in revenue from personal electronic products, but this positive news was partially offset by lower than expected revenue from the automotive business.
(Distribution of revenue by department, source: STMicroelectronics)
Financial report shows that simulation, power& The revenue of discrete devices, MEMS, and sensor product groups decreased by 16.2% year-on-year to $1.91 billion; The revenue of the microcontroller, digital IC, and RF product groups decreased by 35.5% year-on-year to approximately 1.32 billion US dollars.
The company also further lowered its annual revenue guidance, which is the core factor causing the stock price to fluctuate. STMicroelectronics' latest forecast for full year revenue in 2024 is between $13.2 billion and $13.7 billion, compared to the previous market consensus expectation of $14.39 billion.
This is also the second time STMicroelectronics has lowered its revenue guidance for this fiscal year in just six months. In January of this year, the company's expected figures were $15.9 billion to $16.9 billion. When the quarterly report was released in April this year, the number was adjusted to 14-15 billion US dollars. The company also slightly lowered its full year gross profit margin forecast from "40% lower" to 40% on Thursday.
For the ongoing third quarter, STMicroelectronics expects revenue of $3.25 billion (with a fluctuation of 3.5%), while the market consensus is $3.55 billion.