european chip manufacturers ST Microelectronics (STM) easily beat its fourth-quarter profit expectations on Thursday, although sales were slightly understated. It was also significantly higher than the current quarterly and full-year guidance. STM shares surged shortly after trading opened.
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The Geneva-based company earned $1.32 per share on sales of $4.42 billion in the December quarter. An analyst surveyed by FactSet said he expected earnings of $1.13 per share on sales of $4.46 billion. Year-over-year, STMicro’s revenue surged by 61% and sales increased by 24%.
Automotive and industrial chips drove fourth quarter results, CEO Jean-Marc Chery said in a news release.
STMicro expects revenue of $4.2 billion this quarter. Analysts had forecast $3.92 billion for the March quarter. In the same period last year, he had $3.55 billion in sales.
STM stock jump after report
STMicro expects full-year revenues of $16.8 billion to $17.8 billion based on “strong customer demand and increased manufacturing capacity.” Wall Street expected his 2023 sales to be $16.46 billion.
In pre-market trading on the stock market today, STM shares rose 5.4% to 45.67. During Wednesday’s regular session, STM stock rose his 2.1% to close at 43.33.
Wolfspeed plagued by production disruptions
Another semiconductor stock that moved on Thursday’s earnings news was wolf speed (wolf). The Durham, N.C.-based company said late Wednesday that it missed its earnings target for the December quarter, but posted a lower-than-expected loss per share. It also led lower for the current period.
Wolfspeed posted revenue of $216.1 million on an adjusted loss of 11 cents per share in the second quarter of its fiscal year ended December 25. In the year-ago quarter, he lost 16 cents a share on sales of $173.1 million.
For the March quarter, Wolfspeed forecasts an adjusted loss of 14 cents per share on sales of $220 million. Analysts expected him to lose 7 cents a share on sales of $248.4 million.
Analysts say ramping up silicon carbide semiconductor capacity is taking longer than expected, hampering results.
Wolfspeed shares fell 6.7% to 76.51 in early trading.
STMicro Leads Chip Industry Group
According to IBD Stock Checkup, STM stock ranks first in IBD’s semiconductor manufacturing industry group.We share the highest possible IBD composite rating of 99 Allegro Microsystems (ALGM). Wolfspeed ranks his 19th out of the group’s 32 stocks.
The STM stock ranks among the top IBD 50 growth stocks. It is also included in the IBD Tech Leaders list.
Follow Patrick Saitz on Twitter. @IBD_PSeitz For more articles on consumer technology, software and semiconductor stocks, please visit here.
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