By David Sachs

STMicroelectronics’ said that fourth-quarter revenue and gross margin came in slightly below its expectations, with gains in personal electronics offset by slower growth in the automotive business.

The European chip maker said Thursday that net revenue fell 3.2% to $4.28 billion compared to the same quarter a year ago, slightly below its target of $4.30 billion. Analysts had also expected $4.30 billion in sales, according to Factset.

“In Q4, our customer order bookings decreased compared to Q3,” STMicroelectronics said. “We continued to see stable end-demand in Automotive, no significant increase in Personal Electronics, and further deterioration in Industrial.”

Gross profit, a closely watched metric for the company, fell 7.3% to $1.95 billion with a gross margin of 45.5%, down from 47.5%. The company had expected a gross margin of 46% in the fourth quarter.

Net profit fell 14% to $1.08 billion in the fourth quarter. The firm was expected to post net profit of $903 million, according to a Factset poll of 14 analysts.

Operating income decreased 20.5% to $1.02 billion with an operating margin of 23.9%, down from 29.1%.

The firm’s full-year net revenue jumped to $17.29 billion from $16.13 billion in 2022, meeting its $17.3 billion target. Its gross margin finished 2023 at 47.9%, up from 47.3% and in line with its goal of about 48.1%.

Looking ahead, the chip maker set a target of between $15.9 billion and $16.9 billion in revenue for 2024 with a gross margin percentage in the low-to-mid 40s, it said.

For the first quarter, it is targeting net revenue of $3.6 billion and a gross margin of 42.3%. The outlook is dependent on currency exchange rates and includes the impact of hedging contracts, the company said.

STMicroelectronics said it will invest about $2.5 billion capital expenditures in 2024.

Write to David Sachs at david.sachs@wsj.com

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