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STMicroelectronics Q4 Profit Down, But Beats View; Sees Higher Revenues In Q1

Semiconductor company STMicroelectronics NV (STM) reported Thursday that its fourth-quarter net income declined 6.2 percent to $392 million or $0.43 per share from last year's $418 million or $0.46 per share.

On average, seven analysts polled by Thomson Reuters expected earnings of $0.37 per share. Analysts' estimates typically exclude special items.

Fourth- quarter net revenues grew 4 percent to $2.75 billion from $2.65 billion a year ago. Analysts expected revenues of $2.68 billion.

Gross margin was 39.3 percent, down from 40 percent last year.

Looking ahead, for the first quarter, the company said its outlook, at the mid-point, is for net revenues of $2.36 billion, increasing year-over-year by 13.7 percent and decreasing sequentially by 14.3 percent. Gross margin is expected to be 38.0 percent, including about 80 basis points of unsaturation charges.

Analysts expect first-quarter revenues of $2.25 billion.

Further, for 2020, the company plans to invest about $1.5 billion in CAPEX to support strategic initiatives and revenue growth to progress towards mid-term revenue ambition of $12 billion.

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