Stmicroelectronics N.V. ( (STM) ) has released its Q4 earnings. Here is a breakdown of the information Stmicroelectronics N.V. presented to its investors.
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STMicroelectronics N.V., a leader in the semiconductor industry, designs and manufactures a variety of semiconductor products serving a wide range of electronic applications globally. The company is known for its integrated device manufacturing capabilities and commitment to sustainability.
In its latest earnings report for the fourth quarter and full year 2024, STMicroelectronics reported net revenues of $3.32 billion for Q4 and $13.27 billion for the full year. Despite a decline in revenue compared to the previous year, the company’s Q4 results aligned with its business outlook. Key financial metrics showed a decrease in gross and operating margins, with net income dropping significantly year-over-year.
The key financial highlights for 2024 included a 23.2% decrease in net revenues and a 63.0% drop in net income compared to 2023. The company’s operating margin also fell from 26.7% to 12.6%. STMicroelectronics invested $2.53 billion in net capital expenditures, reflecting their continued focus on long-term growth and innovation. Additionally, the company initiated a program to reshape its global manufacturing footprint, which is expected to enhance operational efficiency and result in significant cost savings by 2027.
Despite the challenging financial results, STMicroelectronics continues to focus on strategic initiatives and investments to support future growth. The management has set a business outlook for the first quarter of 2025, forecasting net revenues of $2.51 billion and a gross margin of approximately 33.8%, indicating cautious optimism in navigating the current market conditions.
