STMicroelectronics NV recorded an increase in fourth-quarter sales, driven by customer demand for chips used in personal electronics, communication equipment, computer peripherals, and industrial machinery, although semiconductor demand from the automotive sector continues to struggle with a rebound.
The European chipmaker reported sales of $3.33 billion, marking a 0.2% year-on-year growth after months of consecutive declines and surpassing the analyst forecast of $3.28 billion provided by Visible Alpha.
Despite the improvement, Chief Executive Jean-Marc Chery stated that demand from the automotive industry remains below expectations. For the current quarter, the company anticipates revenue of approximately $3.04 billion, up from $2.52 billion in the same period a year earlier.
The company posted a net loss of $30 million for the fourth quarter, a reversal from a net profit of $341 million in the prior-year period. Gross profit declined to $1.17 billion from $1.25 billion, with a gross margin of 35.2%. According to Visible Alpha data, analysts had previously forecast a net profit of $233.2 million and a gross profit of $1.15 billion.
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