Core Insights - STMicroelectronics reported second quarter net revenues of $3.23 billion, a gross margin of 40.1%, an operating margin of 11.6%, and a net income of $353 million or $0.38 diluted earnings per share [5][28][29] Financial Performance - Net revenues decreased by 25.3% year-over-year, with sales to OEMs and Distribution down by 14.9% and 43.7% respectively [4][28] - Sequentially, net revenues fell by 6.7%, which was 90 basis points better than the midpoint of ST's guidance [4][6] - Gross profit totaled $1.30 billion, reflecting a year-over-year decrease of 38.9% [8][29] - Operating income decreased by 67.3% to $375 million, with an operating margin of 11.6%, down from 26.5% in the previous year [30][33] Segment Performance - The Analog products, MEMS and Sensors (AM&S) segment saw a revenue decrease of 10.0% year-over-year [31] - The Power and Discrete products (P&D) segment experienced a revenue decline of 24.4% [32] - The Microcontrollers (MCU) segment reported a significant revenue drop of 46.0% [6][29] Cash Flow and Financial Position - Net cash from operating activities was $702 million, down from $1.31 billion in the same quarter last year [11][34] - Free cash flow was $159 million, compared to $209 million in the prior year [12][34] - As of June 29, 2024, ST's net financial position was $3.20 billion, with total liquidity of $6.29 billion and total financial debt of $3.09 billion [36][79] Business Outlook - For the third quarter, ST expects net revenues of $3.25 billion, a decrease of 26.7% year-over-year, but a slight increase of 0.6% sequentially [6][14] - Gross margin is anticipated to be around 38%, impacted by approximately 350 basis points of unused capacity charges [6][14] Organizational Changes - On January 10, 2024, ST announced a new organizational structure that will change segment reporting starting Q1 2024 [3][68]

Core Viewpoint - STMicroelectronics reported a significant decline in financial performance for Q2 2024, with net revenues of $3.23 billion, a year-over-year decrease of 25.3%, primarily driven by lower demand in key segments such as Microcontrollers and Power and Discrete products [15][19][29]. Financial Performance - Q2 2024 net revenues were $3.23 billion, down 25.3% from $4.32 billion in Q2 2023, and decreased 6.7% sequentially from Q1 2024 [15][19]. - Gross profit for Q2 2024 was $1.30 billion, reflecting a 38.9% decrease year-over-year, with a gross margin of 40.1%, down 890 basis points from the previous year [20][26]. - Operating income fell 67.3% to $375 million, with an operating margin of 11.6%, down from 26.5% in Q2 2023 [21][26]. - Net income decreased to $353 million, or $0.38 diluted earnings per share, compared to $1.00 billion and $1.06 per share in the year-ago quarter [13][26]. Cash Flow and Financial Position - Free cash flow for Q2 2024 was $159 million, down from $209 million in Q2 2023, indicating an 18.3% decline [4][74]. - Net cash from operating activities was $702 million, compared to $1.31 billion in the same quarter last year, representing a 15.6% decrease [8][54]. - The net financial position as of June 29, 2024, was $3.20 billion, reflecting total liquidity of $6.29 billion and total financial debt of $3.09 billion [12][64]. Business Outlook - For Q3 2024, STMicroelectronics expects net revenues to be approximately $3.25 billion, a sequential increase of 0.6%, with a gross margin forecasted at 38% [5][29]. - The company anticipates a year-over-year revenue decline of 26.7% for Q3 2024, influenced by ongoing challenges in the automotive and industrial sectors [29]. Segment Performance - The Analog products, MEMS and Sensors segment saw a 10.0% revenue decline, while the Power and Discrete products segment experienced a 24.4% decrease [22][23]. - The Microcontrollers segment reported a significant 46.0% drop in revenue, primarily due to decreased demand for general-purpose microcontrollers [30][34].

STMicroelectronics (NYSE:STM) will release its second quarter 2024 earnings before the opening of trading on the European Stock Exchanges on July 25, 2024. For Q2 2024, STM expects net revenues to fall to $3.2 billion with a gross margin around 40%. This would be a YoY decrease of 7.8%. For the full-year 2024 STM has revised revenues down to $14-$15 billion, with a gross margin in the low 40s. Analysts also expect the company to report an EPS of about $1.02. In the previous Q1 2024 call, STM reported net re ...

PR N°C3270C STMicroelectronics Announces Status of Common Share Repurchase Program Disclosure of Transactions in Own Shares – Period from Jul 01, 2024 to Jul 05, 2024 AMSTERDAM – July 8, 2024 -- STMicroelectronics N.V. (the "Company" or "STMicroelectronics"), a global semiconductor leader serving customers across the spectrum of electronics applications, announces full details of its common share repurchase program (the "Program") disclosed via a press release dated June 21, 2024. The Program was approved b ...

PR N° C3267C The Completed Buy-Backs were launched on July 1, 2021 and their duration was approximately 3 years. The actual timing, number and value of Company shares repurchased under the New Buy-Backs will depend on a number of factors, including market conditions, general business conditions and applicable legal requirements. The Company is not obligated to carry out either of the share buy-back programs, and, if commenced, either share buy-back program may be suspended and discontinued at any time, for ...

STMicroelectronics Announces Completion of its 2021 Share Buy-back Programs and Launch of a new 3 Year $1,100 million Share Buy-Back Plan in 2024 The Completed Buy-Backs were carried out, and the New Buy-Backs will be carried out, in accordance with the authorization of the Supervisory Board and the provisions of the Market Abuse Regulation (EU) 596/2014 (the "Market Abuse Regulation") and Commission Delegated Regulation (EU) 2016/1052. The Completed Buy-Backs were launched on July 1, 2021 and their duratio ...

New starting point for all edge-AI projects gathers tools, software and resources in one place for faster, smoother developer experience The ST Edge AI Suite is an integrated collection of software tools, designed to facilitate the development and deployment of embedded AI applications. This comprehensive suite supports both optimization and deployment of machine-learning algorithms, starting from data collection to final deployment on hardware, streamlining the workflow for different types of users. "ST Ed ...

Geely Auto Gears up NEV Transformation and Innovation with Long-Term SiC Supply Agreement and Joint Lab with STMicroelectronics Beijing, China, June 4, 2024 – STMicroelectronics (NYSE:STM), a global semiconductor leader serving customers across the spectrum of electronics applications, and Geely Auto Group (HKEX: HK0175), a global leading automobile and new energy vehicle (NEV) manufacturer, today announced they have signed a long- term Silicon Carbide (SiC) supply agreement to accelerate their existing coo ...

PR N° C3262C STMicroelectronics to build the world's first fully integrated silicon carbide facility in Italy Geneva, Switzerland, May 31, 2024 – STMicroelectronics (NYSE:STM), a global semiconductor leader serving customers across the spectrum of electronics applications, announces a new high-volume 200mm silicon carbide ("SiC") manufacturing facility for power devices and modules, as well as test and packaging, to be built in Catania, Italy. Combined with the SiC substrate manufacturing facility being rea ...

PR N° C3262C STMicroelectronics to build the world's first fully integrated silicon carbide facility in Italy The new facility is targeted to start production in 2026 and to ramp to full capacity by 2033, with up to 15,000 wafers per week at full build-out. The total investment is expected to be around five billion euros, with a support of around two billion euros provided by the State of Italy within the framework of the EU Chips Act. Sustainable practices are integral to the design, development, and opera ...