STMicroelectronics NV Earnings: Everything You Must Know Now

STMicroelectronics NV (NYSE:STM) had a loss and missed Wall Street’s expectations, AND came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company.

STMicroelectronics NV Earnings Cheat Sheet

Results: Adjusted Earnings Per Share decreased to $-0.06 in the quarter versus EPS of $-0.05 in the year-earlier quarter.

Revenue: Decreased 4.8% to $2.05 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: STMicroelectronics NV reported adjusted EPS loss of $0.06 per share. By that measure, the company missed the mean analyst estimate of $0.02. It missed the average revenue estimate of $2.07 billion.

Quoting Management: “In the second quarter we saw sequential progress towards our objectives of sales growth, gross margin improvement and expense reduction,” said ST President and CEO Carlo Bozotti. “Sales were in line with our guidance, despite an accelerated decline of ST-Ericsson`s existing product revenues. Gross margin came in above the midpoint of our guidance due to manufacturing efficiencies and increased volumes. Our quarterly operating expense run rate continues to decrease substantially both on a sequential and year-over-year basis.”

Key Stats (on next page)…

Revenue increased 1.79% from $2.01 billion in the previous quarter. EPS increased to $-0.06 in the quarter versus EPS of $-0.13 in the previous quarter.

Looking Forward: Analysts have a more positive outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has risen from a profit of $0.06 to a profit $0.11. For the current year, the average estimate has moved down from a profit of $0.06 to a profit of $0.01 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)