STMicroelectronics (STM), Europe's largest chipmaker, has disclosed its third-quarter financial results, revealing a significant decrease in profitability. The company's net profit for the quarter plummeted 68% year-over-year, reaching $351 million, with earnings per share at 37 cents. Operating income also saw a substantial drop of 69% to $381 million, although it surpassed market expectations of $321 million.
The company's net revenue for the quarter fell 27% year-over-year to $3.251 billion, aligning slightly above market projections of $3.24 billion. For the full year, STMicroelectronics forecasts a revenue of $13.27 billion, close to the low end of its previous estimate range of $13.2 billion to $13.7 billion, matching market predictions of $13.26 billion.
STMicroelectronics noted that based on current orders and demand visibility, revenue for the fourth quarter and the first quarter of the coming year is expected to decline more sharply than usual seasonal patterns. Major clients of the company include Tesla (TSLA) and Apple (AAPL, Financial).
