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Stock Alert: Shares Of STMicroelectronics Hit 52-Week High

Shares of semiconductor company STMicroelectronics NV (STM) recorded a new 52-week high of $30.22 on Thursday, January 23, 2020, following the announcement of its better-than-expected Q4 results. The stock closed Thursday's trading session at $30.04, up $1.65 or 5.81%. Trading volume surged to 6.05 million versus an average volume of 1.96 million.

Q4 Results

The company, on Jan. 23, reported Q4 net income of $392 million or $0.43 per share versus $418 million or $0.46 per share last year.

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

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

Q1 Guidance

For the first quarter, the company expects net revenues at the mid-point of $2.36 billion, representing a year-over-year increase of 13.7% and a sequential decline of 14.3%. Gross margin is expected to be 38.0%, plus or minus 200 basis points. Analysts expect Q1 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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