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Shares of STMicroelectronics (NYSE:STM) have jumped on Wednesday after the company reported first-quarter earnings.
Revenue in the first quarter came in at $1.61 billion, which was a little light compared to the $1.63 billion in sales that analysts were expecting. The company posted an adjusted net loss of $0.02 per share, which was also slightly worse than expected. Gross margin was 33.4%, up a modest 20 basis points from a year ago.
The good news was guidance. CEO Carlo Bozotti acknowledged that the past few quarters have been soft, but there are now visible signs that the industry is recovering. Bookings are up in many geographic regions and sectors like automotive and industrial are showing increased booking activity. Sales should rise sequentially by about 5.5% and gross margin should expand to 34%.