ST Q2 down and full year revenue forecast reduced

H1 net revenues were $6.70 billion; gross margin 40.9 %; operating margin 13.8%; net income $865 million.

For Q3, ST expects revenues of $3.25 billion at a gross margin of 38%

“Q2 net revenues were above the midpoint of our business outlook range driven by higher revenues in Personal Electronics, partially offset by lower than expected revenues in Automotive,” said CEO Jean-Marc Chery (pictured) “gross margin was in line with expectations. First half net revenues decreased 21.9% year-over-year, mainly driven by a decrease in Microcontrollers and Power and Discrete segments. Operating margin was 13.8% and net income was $865 million.”

”During the quarter, contrary to our prior expectations, customer orders for Industrial did not improve and Automotive demand declined,” added Chery, “our third quarter business outlook, at the mid-point, is for net revenues of $3.25 billion, decreasing year-over-year by 26.7% and increasing sequentially by 0.6%; gross margin is expected to be about 38%, impacted by about 350 basis points of unused capacity charges. We will now drive the Company based on a plan for FY24 revenues in the range of $13.2 billion to $13.7 billion. Within this plan, we expect a gross margin of about 40%.”