Core Insights - The analysis of STMicroelectronics (NYSE: STM) has been conducted twice over the year, focusing on risks to price and future outlook beyond 2024 [1]. Group 1: Company Analysis - The first report (Q1 analysis) highlighted three specific risks that could impact the price of STMicroelectronics [1]. - The second report (Q2 analysis) aimed to provide insights into the company's performance and potential beyond the year 2024 [1]. Group 2: Market Context - The analysis is part of a broader trend where buy-side hedge professionals are engaging in fundamental, income-oriented, long-term analysis across various sectors in developed markets globally [1].

Financial Model and Targets - The company has set an intermediate financial model with revenues expected around $18 billion and an operating margin within a 22% to 24% range for 2027-2028 [1] - The company reiterates its $20 billion plus revenue ambition and associated financial model, now expected to be reached by 2030 [1] - The company expects to achieve high triple-digit million-dollar savings by 2027 through its manufacturing reshaping program and cost base resizing initiative, enabling an operating margin between 22% and 24% in 2027-2028 [2] Strategic Focus and Value Proposition - The company remains focused on sustainable and profitable growth, providing differentiating enablers to customers with a strong commitment to sustainability [3] - The company aims to be a key actor in the transformation of all industries towards a smarter, safer, and more sustainable future, working closely with customers and partners [3] Financial Metrics and Assumptions - The company projects a gross margin of ~44-46% for 2027-2028 and ~50% by 2030 [4] - The operating margin is expected to be ~22-24% for 2027-2028 and over 30% by 2030 [4] - The free cash flow margin is projected to be ~20% for 2027-2028 and over 25% by 2030 [5] - Financial assumptions include a currency exchange rate of approximately $1.09 = €1.00 [5] Capital Markets Day Details - The Capital Markets Day event will cover the company's strategy, key market trends, growth opportunities, developments in manufacturing, technology, and products, and value creation [6] - The event will feature presentations from key executives, including the President & CEO, and heads of various product groups and financial overviews [6] - The event will be webcast live from Paris, France, on November 20, 2024, and will be accessible on the company's website [7] Industry and Market Trends - The company is positioned to address challenges and opportunities in smarter mobility, efficient power and energy management, and the deployment of cloud-connected autonomous things [12] - The company is committed to becoming carbon neutral on scope 1 and 2 and partially scope 3 by 2027, aligning with industry trends towards sustainability [12]

证 券 研 究 报 告 会议纪要 电子 2024 年 11 月 08 日 | --- | --- | --- | |-------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- ...

| --- | --- | |----------------------------------------------|-------| | | | | | | | STMicroelectronics Q3 2024 Financial Results | | | October 31, 2024 | | Forward looking information Some of the statements contained in this release that are not historical facts are statements of future expectations and other forward-looking statements (within the meaning of Section 27A of the Securities Act of 1933 or Section 21E of the Securities Exchange Act of 1934, each as amended) that are based on management's curre ...

Financial Data and Key Metrics - Q3 net revenues were $3.25 billion, in line with the midpoint of the business outlook range [10] - Q3 gross margin was 37.8%, broadly in line with guidance [11] - Q3 net revenues decreased 26.6% year-over-year, driven by declines in Industrial and Automotive segments [11] - Operating margin decreased to 11.7% from 28% year-over-year, and net income was $351 million [11] - For the 9-month period, net revenues were down 23.5% year-over-year to $9.95 billion [12] - Q4 2024 revenue guidance is $3.32 billion at the midpoint, representing a 22.4% year-over-year decline [13] - Full-year 2024 revenue is expected to be $13.27 billion, a 23.2% decrease year-over-year [14] Business Line Performance - Analog products, MEMS, and Sensors revenue decreased 13.3% year-over-year, driven by declines in imaging and analog products [16] - Power and Discrete products revenue decreased 18.4%, with declines in both Power and Discrete segments [16] - Microcontrollers revenue declined 43.4%, mainly due to General Purpose microcontrollers [16] - Digital ICs and RF products declined 29.7%, primarily due to ADAS and Infotainment [17] Market Performance - Industrial market declined by more than 50% year-over-year, Automotive by about 18%, Personal Electronics by about 9%, and Communication Equipment and Computer Peripherals by about 5% [17] - Sequentially, Industrial was down 12%, Automotive was flat, Personal Electronics increased 20%, and Communication Equipment and Computer Peripherals decreased 8% [18] Strategic Direction and Industry Competition - The company is launching a new program to reshape its manufacturing footprint, accelerating the transition to 300mm silicon and 200mm silicon carbide [15] - The company expects annual cost savings in the high triple-digit million-dollar range by 2027 [36] - The company is focusing on innovation and strategic manufacturing initiatives to adapt to market dynamics [37] Management Commentary on Operating Environment and Future Outlook - The company anticipates a revenue decline between Q4 2024 and Q1 2025, well above normal seasonality [14] - Management highlighted challenges in the Automotive and Industrial markets but remains optimistic about long-term growth opportunities [36] - The company is adapting its operating plans to the current market cycle and investing in innovation [37] Other Important Information - Inventory at the end of Q3 was $2.88 billion, with days sales of inventory at 130 days [20] - The company paid $80 million in cash dividends and executed a $92 million share buyback in Q3 [21] - The company's net financial position was $3.18 billion as of September 28, 2024 [21] Q&A Session Summary Question: Drivers of Q1 revenue decline and pricing environment [39] - The decline is driven by customer backlog and order dynamics, not pricing [40] - Pricing pressure is expected to be mid-single digit decline in 2025, slightly higher than 2024 [42] Question: Microcontroller inventory correction [43] - Inventory correction is lasting longer than expected, with normalization expected in H2 2025 [47] Question: Automotive market slowdown [48] - The slowdown is due to a shift from full battery electric to hybrid vehicles and downsized production by carmakers [49] - Inventory correction is ongoing in the automotive supply chain [51] Question: R&D spending and silicon carbide strategy [59] - R&D spending was lower due to one-time items and better expense control, but the company continues to invest in silicon carbide [61][62] Question: AI server wins [64] - The company is addressing all three main blocks of AI server power semis architecture, with a focus on power supply units and voltage handling [66][67] Question: Q1 gross margin outlook [69] - Q1 gross margin is expected to be impacted by unused capacity charges and inventory control measures [71] Question: Restructuring program and M&A [74][75] - The restructuring program is expected to result in high triple-digit million-dollar savings by 2027 [74] - The company is actively looking at bolt-on acquisitions as part of its organic growth strategy [76] Question: Silicon carbide targets [84] - The company expects silicon carbide revenue to be $1.15-$1.2 billion in 2024, with a long-term target of over $5 billion by 2030 [85][86] Question: CapEx implications of 300mm transition [92] - The company plans to reduce CapEx in the coming years as it transitions to 300mm wafer production [93][94]

PR No: C3290C STMicroelectronics Reports 2024 Third Quarter Financial Results Q3 net revenues $3.25 billion; gross margin 37.8%; operating margin 11.7%; net income $351 million YTD net revenues $9.95 billion; gross margin 39.9%; operating margin 13.1%; net income $1.22 billion Business outlook at mid-point: Q4 net revenues of $3.32 billion and gross margin of 38% Launch of a new company-wide program to reshape our manufacturing footprint accelerating our wafer fab capacity to 300mm Silicon and 200mm Silicon ...

STMicroelectronics (STM) is scheduled to report its third-quarter 2024 results on Oct. 31.For the third quarter, the company expects net revenues of $3.25 billion at the midpoint. The Zacks Consensus Estimate for revenues is pegged at $3.22 billion, implying a 27.3% year-over-year decline.The consensus mark for earnings has remained unchanged over the past 60 days at 33 cents per share, indicating a decline of 71.6% from the year-ago reported figure.STM surpassed the Zacks Consensus Estimate in three of the ...

STMicroelectronics' innovative biosensing technology enables next-generation wearables for individual healthcare and fitness Highly integrated biosensor device combines input channel for cardio and neurological sensing with motion tracking and embedded AI core Demonstration to take place at Electronica 2024, Munich, November 12-15 Geneva, Switzerland, October 28, 2024 – STMicroelectronics (NYSE: STM), a global semiconductor leader serving customers across the spectrum of electronics applications, has introd ...

SAN DIEGO, Oct. 21, 2024 (GLOBE NEWSWIRE) -- Robbins Geller Rudman & Dowd LLP announces that purchasers or acquirers of STMicroelectronics N.V. (NYSE: STM) securities between January 25, 2024 and July 24, 2024, inclusive (the “Class Period”), have until this upcoming Tuesday, October 22, 2024 to seek appointment as lead plaintiff of the STMicroelectronics class action lawsuit. Captioned Wang v. STMicroelectronics N.V., No. 24-cv-06370 (S.D.N.Y.), the STMicroelectronics class action lawsuit charges STMicroel ...

LOS ANGELES, Oct. 18, 2024 /PRNewswire/ -- The DJS Law Group reminds investors of a class action lawsuit against STMicroelectronics N.V. ("ST" or "the Company") (NYSE: STM) for violations of §§10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder by the U.S. Securities and Exchange Commission. Shareholders who purchased shares of STM during the class period listed are encouraged to contact the firm regarding possible lead plaintiff appointments. Appointment as lead pla ...