Infineon Technologies (STM.US) again lowered its annual revenue forecast due to the continued downturn in the automotive segment.
1min read STMicroelectronics(STM.US) released its second-quarter earnings report before the market opened on Thursday. The data showed that the company's Q2 revenue was $3.23 billion, down 25% year-over-year and slightly below the consensus estimate of $3.2 billion. The diluted earnings per share was $0.38, above the consensus estimate of $0.35. Moreover, due to excess inventory and decreased sales from automotive manufacturers, the company has twice reduced its annual revenue forecast.
STMicroelectronics said it would reduce its annual revenue forecast to $13.2 billion to $13.7 billion from the previous $14 billion to $15 billion. This is the second time the chipmaker has reduced its annual forecast this year, after it raised its annual revenue forecast to $16.9 billion in January.
The performance of chipmakers was mixed during this earnings season. The industry leader Texas Instruments(TXN.US) released its earnings report after the market closed on Thursday, and gave a more positive outlook, saying that Chinese electronics manufacturers are increasing orders again after finishing the inventory of unused parts. The consensus earnings guidance met expectations, which led Wall Street to believe that the slump in demand for simulation chips is nearing its end.
Meanwhile, Dutch chipmaker NXP Semiconductors(NXPI.US) also released its second-quarter earnings report this week, with its revenue down due to decreased orders for automotive chips, and its outlook was also disappointing, causing the company's stock price to drop 7%.
STMicroelectronics CEO Jean-Marc Chery said in the report: "Contrary to our previous expectations, industrial customers' orders did not improve this quarter, and the automotive demand was down." He said that the automotive business revenue fell short of expectations, offsetting the growth in the company's sales of personal electronics.
STMicroelectronics' customers include Tesla(TSLA.US) and Apple(AAPL.US), the electric vehicle and smartphone manufacturers. The company announced last month that it would repurchase up to $1.1 billion of its stock over the next three years, equivalent to 2.8% of the outstanding shares.
The stock has fallen 21% this year, and was down 7.26% in after-hours trading at $36.67 at the time of writing, and barely changed in trading in Paris on Wednesday.