STMicroelectronics dips after Q4 outlook seen below estimates

[STMicroelectronics (or ST) offices in Silicon Valley]
Sundry Photography/iStock Editorial via Getty Images

Shares of STMicroelectronics (NYSE:STM [https://seekingalpha.com/symbol/STM]) fell about 4% premarket on Thursday after it forecast fourth quarter revenue below estimates.

OUTLOOK

The company expects [https://seekingalpha.com/pr/20276614-stmicroelectronics-reports-2025-third-quarter-financial-results#hasComeFromMpArticle] net revenues for the full year 2025 to be $11.75B at midpoint, versus consensus of $11.79B. For the fourth quarter the company expects net revenues of $3.28B at the midpoint compared to a consensus of $3.38B.

“Our strategic priorities remain clear: accelerating innovation; executing our company-wide program to reshape our manufacturing footprint and resize our global cost base, which remains on schedule to deliver the targeted savings; and strengthening free cash flow generation," said STMicroelectronics' President and CEO Jean-Marc Chery.

Chery added that to optimize investments in response to the current market conditions, the company has reduced its net capex plan, and it is now slightly below $2B for 2025.

Q3 METRICS

Net revenues for the third quarter ended Sept. 27 fell 2% year-over-year to $3.19B, while non-U.S. GAAP EPS declined 21.6% year-over-year to $0.29. Both top and bottom line numbers beat analysts expectations [https://seekingalpha.com/news/4507270-stmicroelectronics-beats-top-line-and-bottom-line-estimates-initiates-q4-and-fy-outlook]. Compared to the second quarter of 2025, net revenues grew [https://seekingalpha.com/news/4471194-stmicroelectronics-slumps-after-q2-sees-operating-loss-due-to-restructuring-costs] 15.2% while EPS jumped 383.3% quarter-over-quarter.

The company reported an operating loss of $133M for the second quarter of 2025, compared to an operating income of $180M in the third quarter of 2025.

"Q3 net revenues came slightly above the mid-point of our business outlook range, with higher revenues in Personal Electronics, while Automotive and Industrial performed as anticipated, and CECP was broadly in line with expectations. Gross margin was slightly below the mid-point of our business outlook range mainly due to product mix within Automotive and Industrial," said Chery.

Chery added that in the third quarter, the company's book-to-bill ratio was above one, with Automotive above parity and Industrial at parity.

Analog products, MEMS and Sensors (AM&S) segment revenue grew 7% year-over-year to $1.43B, mainly due to a Imaging, according to the company.

Revenue from the Power and Discrete products (P&D) segment decreased 34.3% year-over-year to $429M.

Meanwhile, revenue from Microcontrollers, Digital ICs and RF products (MDRF) Product Group rose 5.3% year-over-year to $1.32B.

Related stocks: Marvell Technology (MRVL [https://seekingalpha.com/symbol/MRVL]) and Lattice Semiconductor (LSCC [https://seekingalpha.com/symbol/LSCC]) rose about 1% each, while Texas Instruments (TXN [https://seekingalpha.com/symbol/TXN]), Analog Devices (ADI [https://seekingalpha.com/symbol/ADI]) and NXP Semiconductors (NXPI [https://seekingalpha.com/symbol/NXPI]) were flat premarket on Thursday.

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* Seeking Alpha’s Quant Rating on STMicroelectronics [https://seekingalpha.com/symbol/STM/ratings/quant-ratings]