Q2 2024 STMicroelectronics NV Earnings Call Transcript
Key Points
- STMicroelectronics NV (STM) reported Q2 2024 net revenues of $3.23 billion, which were above the midpoint of their business outlook range.
- The company announced a new share buyback plan totaling up to $1.1 billion to be executed within a three-year period.
- STMicroelectronics NV (STM) continues to execute its strategy in automotive, with multiple wins in power discrete technologies and a long-term silicon carbide supply agreement with Geely Auto.
- The company is investing in a new high-volume 200mm silicon carbide manufacturing facility in Catania, Italy, supported by EUR2 billion from the State of Italy under the European Union Chips Act.
- STMicroelectronics NV (STM) is focusing on Edge AI enablement, launching the ST Edge AI Suite to simplify and accelerate Edge AI application development.
- Q2 2024 net revenues decreased 25.3% year-over-year, driven by declines in industrial and automotive segments.
- Gross margin decreased to 40.1% from 49% year-over-year, and operating margin decreased to 11.6% from 26.5%.
- Net income for Q2 2024 decreased 64.8% to $353 million compared to the same quarter last year.
- Customer orders for industrial did not improve as expected, and automotive demand declined, leading to a revised lower revenue forecast for the full year 2024.
- Inventory levels remain high, with days sales of inventory at 130 days, indicating slower inventory turnover.
2024 earnings release conference call and live webcast. I am Myra, the Chorus Call operator. (Operator Instructions) And the conference is being recorded. (Operator Instructions) The conference must not be recorded for publication or broadcast. At this time, it's my pleasure to hand over to Celine Berthier, Group Vice President, Head of Investor Relations. Please go ahead, madam.
Thank you, Myra, and good morning. Thank you, everyone, for joining our second-quarter 2024 financial results conference call. Hosting the call today is Jean-Marc Chery, ST's President and Chief Executive Officer. Joining Jean-Marc on the call today are Lorenzo Grandi, President of Finance, Purchasing, ERM, & Resilience and Chief Financial Officer; and Marco Cassis, President, Analog, Power & Discrete, MEMS and Sensors Group and Head of STMicroelectronics' Strategy, System Research and Applications and Innovation Office. These live webcast and presentation materials can be accessed on ST
| Access to All Earning Calls and Stock Analysis | |
| 30-Year Financial on one screen | |
| All-in-one Stock Screener with unlimited filters | |
| Customizable Stock Dashboard | |
| Real Time Insider Trading Transactions | |
| 8,000+ Institutional investors’ 13F holdings | |
| Powerful Excel Add-in and Google sheets Add-on | |
| All data downloadable | |
| Quick customer support | |
| And much more... |
Trustpilot
We'd love to learn more about your experiences on GuruFocus.com and how we can improve!
Take Survey
