ST 2024 Q2 revenue in analog products, MEMS and Sensors (AM&S) segment, Power and Discrete products (P&D) segment, ST Microcontrollers (MCU) segment, digital ICs and RF products (D&RF) segment marginally shrinked. 
In the second quarter (Q2), ST recorded $3.23 billion in net revenues, a 40.1% gross margin, an 11.6% operating margin, and $353 million in net income, or $0.38 diluted profits per share. These revelations were made as the the U.S. GAAP financial figures for STMicroelectronics’ second quarter ended June 29, 2024 were officially released.
In Analog products, MEMS and Sensors (AM&S) segment, revenue decreased 10.0% mainly due to a decrease in Imaging. Operating profit decreased by 44.5% to $144 million. Operating margin was 12.4% compared to 20.0%.
Power and Discrete products (P&D) segment, revenue decreased 24.4%. Operating profit decreased by 57.9% to $110 million. Operating margin was 14.7% compared to 26.4%.
ST Microcontrollers (MCU) segment in the second quarter witnessed revenue decreased 46.0% mainly due to a decrease in GP MCU. Operating profit decreased by 87.1% to $72 million. Operating margin was 8.9% compared to 37.2%.
On the other hand the digital ICs and RF products (D&RF) segment revenue decreased 7.6% due to a decrease in ADAS which more than offset the increase in RF Communications. Operating profit decreased by 23.8% to $150 million. Operating margin was 29.1% compared to 35.2%.
Key Takeaways from Jean-Marc Chery, ST President & CEO on ST Q2 2024 Results:
- “Q2 net revenues were above the midpoint of our business outlook range driven by higher revenues in Personal Electronics, partially offset by lower than expected revenues in Automotive. Gross margin was in line with expectations, mentioned Jean-Marc Chery.”
- “First half net revenues decreased 21.9% year-over-year, mainly driven by a decrease in Microcontrollers and Power and Discrete segments. Operating margin was 13.8% and net income was $865 million.”
- “During the quarter, contrary to our prior expectations, customer orders for Industrial did not improve and Automotive demand declined, stated Jean-Marc Chery.”
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“Our third quarter business outlook, at the mid-point, is for net revenues of $3.25 billion, decreasing year-over-year by 26.7% and increasing sequentially by 0.6%; gross margin is expected to be about 38%, impacted by about 350 basis points of unused capacity charges.”
- Affirming on the ahead strategy, Jean-Marc Chery, said, “We will now drive the Company based on a plan for FY24 revenues in the range of $13.2 billion to $13.7 billion. Within this plan, we expect a gross margin of about 40%.”
In the second quarter (Q2), ST net revenues totaled $3.23 billion, representing a year-over-year decrease of 25.3%. Year-over-year net sales to OEMs and Distribution decreased 14.9% and 43.7%, respectively. On a sequential basis, net revenues decreased 6.7%, 90 basis points better than the mid-point of ST’s guidance.
Whereas, the gross profit totaled $1.30 billion, representing a year-over-year decrease of 38.9%. Gross margin of 40.1%, in line with the mid-point of ST’s guidance, decreased 890 basis points year-over-year, mainly due to the combination of product mix and sales price and higher unused capacity charges.
ST’s Inventory in the Q2
Comparing the end of the second quarter to the previous quarter and the year earlier, ST inventory was $2.81 billion as opposed to $2.69 billion and $3.05 billion, respectively. Inventory days sold at the end of the quarter were 130, down from 126 days the year before and 122 days in the preceding quarter.
What’s The Next Business Outlook for ST?
ST’s guidance, at the mid-point, for the 2024 third quarter is, net revenues are expected to be $3.25 billion, an increase of 0.6% sequentially, plus or minus 350 basis points.
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