European chipmaker STMicroelectronics on Thursday handily beat expectations for earnings in the fourth quarter, though its sales were a tad light. It also guided much higher than views for the current quarter and full year. STM stock jumped on the news.
The Geneva-based company earned $1.32 a share on sales of $4.42 billion in the December quarter. Analysts polled by FactSet had expected earnings of $1.13 a share on sales of $4.46 billion. On a year-over-year basis, STMicro earnings surged 61% while sales advanced 24%.
Automotive and industrial chips drove its results in the fourth quarter, Chief Executive Jean-Marc Chery said in a news release.
For the current quarter, STMicro forecast sales of $4.2 billion. Analysts had projected $3.92 billion for the March quarter. In the year-earlier period, it generated sales of $3.55 billion.
STM Stock Jumps After Report
Based on "strong customer demand and increased manufacturing capacity," STMicro expects full-year revenue of $16.8 billion to $17.8 billion. Wall Street had expected 2023 sales of $16.46 billion.
On the stock market today, STM stock lurched forward by 7.8% to close at 46.69. During the regular session Wednesday, STM stock rose 2.1% to close at 43.33.
Wolfspeed Dogged By Production Snags
Another semiconductor stock moving on earnings news Thursday was Wolfspeed. The Durham, N.C.-based company late Wednesday missed its revenue target for the December quarter but its per-share loss was lower than expected. It also guided lower for the current period.
Wolfspeed lost an adjusted 11 cents a share on sales of $216.1 million in its fiscal second quarter ended Dec. 25. Wall Street was expecting a loss of 13 cents a share on sales of $225.3 million. In the year-earlier period, it lost 16 cents a share on sales of $173.1 million.
For the March quarter, Wolfspeed forecast an adjusted loss of 14 cents a share on sales of $220 million. Analysts had been looking for a loss of 7 cents a share on sales of $248.4 million.
Ramping production capacity for silicon carbide semiconductors is taking longer than expected, hindering results, analysts say.
Wolfspeed stock dropped 5.9% to close at 77.09 Thursday.
STMicro Tops Chip Industry Group
STM stock is tied for first place in IBD's semiconductor manufacturing industry group, according to IBD Stock Checkup. It shares a best-possible IBD Composite Rating of 99 with Allegro MicroSystems. Wolfspeed ranks No. 19 out of 32 stocks in the group.
STM stock is on the IBD 50 list of top-performing growth stocks. It also is on the IBD Tech Leaders list.
Follow Patrick Seitz on Twitter at @IBD_PSeitz for more stories on consumer technology, software and semiconductor stocks.
