STMicroelectronics Shares Jump on Better-Than-Expected 3Q Revenue

   By Mauro Orru 
 

STMicroelectronics NV's shares jumped Thursday after the company said third-quarter revenue should be higher than anticipated, citing "significantly better-than-expected market conditions."

At 1010 GMT, STMicroelectronics shares traded 6.5% higher at EUR27.97.

The European chip maker said revenue for the quarter ended Sept. 26 is expected to come in at $2.67 billion, according to preliminary figures, higher than the $2.45 billion at mid-point it had previously indicated.

"Sharp acceleration in demand of automotive products and microcontrollers, as well as our engaged customer programs in personal electronics, were the main factors that contributed to this result," said Chief Executive Jean-Marc Chery.

STMicroelectronics also said revenue for the year should be above $9.65 billion, at the higher end of the range it previously expected.

Analysts at U.S. bank Citi said the update is positive for the wider diversified chip makers space, including European peer Infineon Technologies AG, whose shares traded 7.6% higher at EUR25.95 at 1010 GMT.

STMicroelectronics' preliminary third-quarter revenue figure is about 8% ahead of consensus projections of around $2.47 billion and also above Citi's expectations of $2.45 billion, Citi analysts said.

STMicroelectronics will publish third-quarter results on Oct. 22.

Write to Mauro Orru at [e-mail]; @MauroOrru94

(END) Dow Jones Newswires

October 01, 2020 06:35 ET (10:35 GMT)

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