STMicroelectronics' stock price drops by over 18%, with third quarter revenue guidance falling short of expectations

On July 23rd, STMicroelectronics' stock price plummeted by over 18%, reaching a low of $53.66, hitting a new low since the end of April this year. STMicroelectronics had a net revenue of $3.49 billion, a net profit of $222 million, a gross profit of $1.22 billion, and a gross profit margin of 34.8% in the second quarter. The company expects a revenue of approximately 3.7 billion US dollars in the third quarter, which is lower than the average analyst expectation of 3.9 billion US dollars; The gross profit margin is about 37%. Citigroup analyst Andrew Gardiner pointed out that the financial report shows that the recovery of end markets such as automotive and industrial is still advancing, and AI and data center businesses continue to maintain high-speed growth. However, market expectations and valuations have risen synchronously. In the absence of upward revision space for profit forecasts, stock prices are facing downward pressure in the short term.