Stm leads the rises on the Ftse Mib after the spread of the first quarter accounts, closed with a Net income down 25% year over year to $178 million, just below expectations.
In the first three months of 2019, the gross margin it stood at 39,4%, down 50 basis points, while i revenues they dropped 6,7% year over year to $2,08 billion. A decline which, according to what was declared by CEO Jean-Marc Che'ry, is "in line with our forecasts". Analysts were expecting revenue of $2,12 billion.
“In the first half, revenues and gross margin were in line with our forecasts, in a context of slowing market dynamics, and we maintained a solid level of profitability,” said Jean-Marc Che'ry.
Based on what was announced, growth will return in the second quarter.In detail, for the April-June period, the group estimates an increase in net revenues of around 2,4% as an intermediate value compared to the first three months of the year and a gross margin of around 38,5%.
La guidance it also forecasts an acceleration of revenues in the second half of 2019, an estimate that seems to please investors who are rewarding the stock with a rain of purchases (+3,12% to 16,53 euros).
The Italian-French company "reported results for the first quarter substantially in line with expectations," he stressed Equity, recalling that revenue (2,1 billion dollars, -22% year on year) was affected by the double-digit decline of microcontrollers and analog/sensor products, while power discretes and automotive products grew (+ 11% year over year). “Gross margin at 39,4% was slightly better than expectations (39%), while earnings per share at $0,2 were in line with our estimates,” said the analysts, who appreciated that “The company confirmed that it expects a strong recovery in revenue in the second half of 2019, indicating sales for the year in a range of $9,45 billion to $9,85 billion."
As far as the investmentsSTM revised its 2019 capital expenditures down to $1,1-1,2 billion from an initial forecast of $1,2-1,3 billion.
