(Bloomberg) — STMicroelectronics NV forecast first quarter revenue that missed analysts’ expectations, as demand from the chipmaker’s customers in the industrial and auto sectors remains weak.
Revenue in the current period is seen at $2.51 billion, the Franco-Italian company said in a statement on Thursday. That compares with an average estimate of $2.73 billion by analysts surveyed by Bloomberg.
Revenue in the fourth quarter was in line with expectations, down 22% from a year earlier to $3.32 billion, according to the company, which makes chips for Apple Inc. and Tesla Inc.
“We continued to face a delayed recovery and inventory correction in Industrial and a slowdown in Automotive, both particularly in Europe,” Chief Executive Officer Jean-Marc Chery said in the statement.
STMicro produces mature chips, a market that has largely been bypassed by a boom in demand for advanced semiconductors that power artificial intelligence. There’s an inventory glut of chips for industrial applications, autos and smartphones that has shown few signs of ending. STMicro competitor Texas Instruments Inc. gave a disappointing forecast last week for the current period, citing sluggish demand and higher manufacturing costs.
STMicro’s shares have lost 42% in the last year.
Tesla’s below-expected deliveries and Apple’s shrinking global iPhone shipments last quarter present a challenge for STMicro, Bloomberg Intelligence analyst Ken Hui said in a note before the results were published.
Tesla’s annual vehicle sales dropped for the first time in more than a decade last year. The company delivered 3.3% fewer cars in the fourth quarter than analysts projected.
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