The following is a summary of the STMicroelectronics N.V. (STM) Q1 2024 Earnings Call Transcript:
Financial Performance:
STMicroelectronics reported Q1 net revenues at $3.47 billion, down by 18.4% year-over-year, with a gross margin of 41.7%.
Operating margin and net income showed notable downwards trends.
Order bookings particularly from the Industrial sector remained weak in Q1.
The Q2 2024 outlook estimates further declines in revenues and gross margins.
The full year 2024 revenue range is revised down between $14 billion to $15 billion, reflecting a deteriorating market environment.
Business Progress:
STMicroelectronics experienced a slowdown in the Automotive sector, as the demand from electric vehicle production reduced. However, the company managed to win significant contracts supporting car electrification from major truck manufacturers.
Despite a correction seen in Q1, ST Electronics continued to develop momentum on edge AI applications.
With successful customer engagements in Personal electronics and Computer peripherals, the company managed to earn awards for RF front-end modem solutions.
The company's commitment to sustainability showed significant progress with a 45% decrease in greenhouse gas emissions from 2018.
Further, future outlook for silicon carbide growth remains positive, and the company is committed to protecting innovation and R&D while adjusting business priorities.
More details: STMicroelectronics IR
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