STMicroelectronics NV (STM) experienced a sharp intraday decline of 6.78% on Thursday, as investors reacted negatively to the company's latest quarterly financial results.
The semiconductor manufacturer reported fourth-quarter non-GAAP earnings per share of $0.11, representing a steep 70.3% decline from the $0.37 per share reported in the same period last year. This result significantly missed analyst consensus estimates, which ranged from $0.14 to $0.27 per share. On a U.S. GAAP basis, the company posted a net loss of $30 million, or $0.03 per diluted share.
Investor sentiment was further impacted by the company's first-quarter business outlook, which forecasts a gross margin of approximately 33.7% including about 220 basis points of unused capacity charges. The significant year-over-year drop in profitability, coupled with the earnings miss, drove the negative reaction during Thursday's trading session.
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