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(Sharecast News) - STMicroelectronics shares jumped in Paris on Thursday after the contract chip manufacturer beat forecasts and its own guidance with a 23% increase in first-quarter revenues and pointed to current-quarter sales well ahead of market estimates.
For the three months to 28 March, the firm reported revenues of $3.10bn, down 7.0% sequentially but well ahead of the $2.52bn reported the year before due to growth in the personal electrics and CECP (Communications Equipment & Computer Peripherals) divisions. This was also above the $3.06bn expected the analysts.
"In Q1, despite the macroeconomic uncertainty, we saw improving demand with strong booking and normalised inventory in distribution," said president and chief executive Jean-Marc Chery.
Net profits, however, fell 34% to $37m from $56m the year before, though gross profits were 24% higher at $1.05bn.
For the second quarter, STM said it expected net revenues to rise 11.6% quarter-on-quarter to $3.45bn, smashing the current consensus estimate of $3.18bn.
"ST is now strategically positioned to capture upside from new AI driven programs, leveraging specialized technologies to enable the evolving AI infrastructure, confirming our datacentres revenue expectation to be nicely above $500 million for 2026 and well above $1 billion for 2027," Chery said.
The stock was up 7.1% at 40.14 by 1234 BST.
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