STMicroelectronics stock rebounds 4.5% over the week following a Q3 up 18%
The semiconductor manufacturer is regaining ground mid-morning, after a series of very tight technical benchmarks. Its accounts, published this morning, show a recovery that is now gaining profitability, as the Paris index advances significantly.
Revenue of $3.76 billion and operating income more than doubled
STMicroelectronics stock gains 1.31% to €43.94 during the session, in a CAC 40 rising 1.08%. The share extends a rebound of 4.58% over the week, after a difficult October (-4.15% over one month).
The group published this morning revenue of $3.76 billion in the third quarter, up 17.9% year-on-year and exceeding the midpoint of its guidance range by 150 basis points.
Operating income more than doubled, to $367 million versus $180 million a year earlier, and gross margin expanded by 410 basis points, to 37.3%, thanks to lower charges related to underutilized capacity and improved product mix.
Earnings per share, however, remained below expectations. Management anticipates continued margin improvement at year-end.
Reorganized structure as of January 1st and share price aligned with its moving averages
The group also announced today a new research and development organization: Rémi El-Ouazzane becomes Chief Technology Officer and Marco Cassis becomes Chief Strategy Officer, effective January 1, 2027, the date when reportable segments will be adjusted.
On the quotation side, the share price remains below its 20 and 50-day moving averages (€44.28 and €44.21), but moves above the 200-day MA at €43.71, a 0.53% difference.
The RSI at 51 is neutral. According to the consensus of surveyed analysts, the stock is trading at approximately 19 times next fiscal year's earnings. Among comparable values, ASM International gains 1.03% and ASML Holding declines 0.26%. The next technical level identified in the data is resistance at €52, with support at €39.47.
