STMicroelectronics Stock: 4.06% Decline at Closing Ahead of Quarterly Earnings Release
The stock of the Franco-Italian semiconductor manufacturer declined this Wednesday in the Paris market. The stock closed lower, having risen more than 4% over the past seven days. This session comes just hours before the release of the third-quarter results, expected on October 23.
STMicroelectronics closed at 25.49 euros, down 4.06% compared to the previous day's close of 26.57 euros. This decline is part of a generally downward market trend, with the CAC 40 falling by 0.63% during the same session. Trading remained subdued with a traded capital share of 0.36%, indicating moderate activity on the stock. Over a longer period, the company's stock has shown an increase of 4.34% over seven days and 1.45% over a year, outperforming the Paris index which recorded an 8.9% rise over twelve months. However, the three-month trend remains negative with a decline of 10.26%, reflecting the turbulence experienced by the semiconductor sector during the summer and autumn.
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The decline observed this Wednesday is partly explained by the disappointing publication from Texas Instruments, an American competitor. The Texas chip giant saw its stock drop more than 8% in after-hours trading after unveiling lower-than-expected forecasts for the fourth quarter. Texas Instruments expects earnings per share between $1.13 and $1.39, with a midpoint of $1.26, well below the $1.41 expected by consensus. This announcement has weighed on the entire semiconductor sector. The session on October 22 comes at a particular time for STMicroelectronics, on the eve of the announcement of its third-quarter results. This release, scheduled for October 23 before market opening, will be closely watched by financial markets to assess the company's trajectory in a complex sector environment.
Technical Analysis of the Stock
Technically, the stock is in a zone of tension. The RSI indicator stands at 70, a level generally considered as an overbought zone, suggesting some overheating of the stock after its weekly progression. However, the price remains above its 50-day (23.56 euros) and 200-day (23.13 euros) moving averages, confirming a positive underlying trend despite the day's decline. The Bollinger Bands frame the stock between 23.35 euros in support and 25.98 euros in resistance, with the current price situated in the middle part of this corridor. The MACD shows a positive signal with a line at 0.66 above the signal of 0.55, while the histogram comes out at 0.11. The one-month volatility is at 8.59, while the technical support threshold is identified at 22.19 euros and the resistance level at 26.57 euros, corresponding to the previous day's price.
« Le chiffre d'affaires du quatrième trimestre a dépassé le milieu de notre prévision et la marge brute a été soutenue par un meilleur mix produit. »
STMicroelectronics a publié ses résultats pour le quatrième trimestre et l'année 2025. Le chiffre d'affaires annuel s'établit à 11,8 milliards de dollars avec une marge brute de 33,9% et un résultat opérationnel de 175 millions de dollars. Le bénéfice net attribuable aux actionnaires pour l'année est de 166 millions de dollars, et le flux de trésorerie disponible (non-U.S. GAAP) pour l'année est de 265 millions de dollars. Pour 2026, le point médian du trimestre est un chiffre d'affaires attendu de 3,04 milliards de dollars et une marge brute d'environ 33,7%.
Risks mentioned
changements dans les politiques commerciales mondiales, y compris les tarifs et barrières commerciaux, susceptibles d'affecter la demande
incertitudes macroéconomiques et inflation, influençant la production et la demande finale
écarts entre la demande client et les projections nécessitant des mesures de transformation
capacité à concevoir, fabriquer et vendre des produits innovants dans un environnement technologique rapide
Outlook / guidance
Expected revenue: Le chiffre d'affaires du premier trimestre 2026 est attendu autour de 3,04 milliards de dollars, en baisse séquentielle d'environ 8,7% et avec une marge brute d'environ 33,7% (plus ou moins 350 pb pour le chiffre d'affaires et plus ou moins 200 pb pour la marge brute).
Management commentary: La direction souligne que les perspectives dépendent des conditions macroéconomiques, des taux de change et du mix produit.
The information presented in this article is provided for informational purposes only and does not constitute an investment recommendation, an incentive to buy or sell a financial asset, or investment advice. Readers are invited to conduct their own research before making any decision.
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