STMicroelectronics revises sales expectations downward once again.

Europe's largest chip manufacturer, STMicroelectronics, has once again lowered its full-year revenue expectations to the lower end of its already reduced forecast. This marks the third adjustment this year. The company, which serves major clients such as Tesla and Apple, now anticipates an annual revenue of $13.27 billion. Initially, a range of $13.2 to $13.7 billion was forecasted before the estimates were last adjusted in July. According to a recent statement from the company, a decline in revenue beyond the usual seasonality is expected between the fourth quarter of 2024 and the first quarter of 2025. This development is attributed to the current order situation of the customers and demand forecasts. The weaker industrial demand is affecting not only STMicroelectronics. Other companies in the automotive semiconductor industry, such as Texas Instruments and Melexis, are also experiencing a decline in orders. This phenomenon is due to large inventories and decreasing demand in the automotive sector. Analysts from LSEG had hoped for an annual result of $13.26 billion, which is close to the current estimates.