STMicroelectronics N.V. (ADR) (NYSE:STM) Reports Wider Loss But Predicts Sales Recovery

  on Apr 24,2012 Posted in Business News ,Investment Ideas
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STMicroelectronics N.V. (ADR) (NYSE:STM) recently said it predicts second-quarter sales will boost versus the previous period, when revenue dropped because of weakness in the wireless business and European markets.

Europe’s largest semiconductor maker said that revenue would move up by nearly 7.5 percent, plus or minus 3 percentage points, in comparison with $2.02 billion generated in the first quarter.

The Geneva-based company turned to a net loss of $176 million in the starting three-month period, from profit of $170 million in the same period a year earlier and remained wider than the $75 million loss expected by Wall Street.

The stock price retreated in last session after ST-Ericsson, which is an alliance with Ericsson AB, revealed a plan to cut 1,700 positions and transfer development of some of its more advanced processors to STMicroelectronics to reduce costs.
Intel Corporation (NASDAQ:INTC) ended down -0.54% to $27.45, Texas Instruments Incorporated (NASDAQ:TXN) retreated -1.79% to finish at $31.89, Micron Technology, Inc (NASDAQ:MU) fell -0.15% to close at $6.63 and Applied Materials, Inc (NASDAQ:AMAT) dropped -1.61% to complete the trade at $11.58.

STMicroelectronics N.V. (ADR) (NYSE:STM) last session volume of 12.09 million shares was surprisingly higher than its average volume of 2.04 million shares. The stock after opening at $6.31 hit high price of $6.34 and then closed at $5.95 by scoring -9.57%.

STM generated revenue of 9.74 billion in the following twelve months and earned $968.00 million. The Company showed a negative 4.86% in the net profit margin and as well as in its operating margin which remained 7.01%. Company’s annual sales growth for the past five year was -0.24%.

The STM past twelve months price to sales ratio was 0.56 and price to cash ratio remained 2.33. As far as the returns are concern, the STM as +5.13% return on investment while its return on asset stayed at +3.72%.

The stock showed weekly downbeat performance of -12.37% which was maintained for the month at -23.70%. Likewise the negative performance for the quarter was recorded as -16.32% and for the year was -49.32% while the YTD performance remained at +1.88%.



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