STMicroelectronics cuts full-year outlook for second time

Franco-Italian chipmaker STMicroelectronics (STM) cut its full-year revenue guidance for the second time this year on Thursday as industrial customer orders did not improve and automotive demand declined.

The company, whose clients include Tesla and Apple , said it expects revenue in the range of $13.2 billion to $13.7 billion for 2024, against a previous forecast range of $14 billion to $15 billion.

It forecast margins at about 40%, instead of its previously “low 40’s”.

“During the quarter, contrary to our prior expectations, customer orders for Industrial did not improve and Automotive demand declined”, said Jean-Marc Chery, President & CEO, in a statement.

STM had cut its outlook in April, citing weakening demand from carmakers and industrial clients.

Analysts at J.P. Morgan said earlier this week that a guidance cut was “widely expected”.