STMicroelectronics Reports 2024 Second Quarter Financial Results

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].