The logo of electronics and semiconductors manufacturer STMIcroelectronics is seen outside a company building in Montrouge, near Paris, France, July 12, 2022. REUTERS/Sarah Meyssonnier/ File Photo
(Reuters) -European chipmaker STMicroelectronics on Thursday lowered its full-year sales guidance, the latest semiconductor company to struggle with weakening demand from carmakers and a further decline in orders from laptop and phone companies.
The warning came after the company posted lower-than-expected first-quarter results.
The company, whose clients include Tesla and Apple, said it expects revenue in the range of $14 billion to $15 billion for 2024, down from its previous forecast range of $15.9 billion to $16.9 billion.
Analysts polled by LSEG were expecting revenue of $16.1 billion for the year.
"During the quarter, automotive semiconductor demand slowed down compared to our expectations, entering a deceleration phase, while the ongoing industrial correction accelerated," said CEO Jean-Marc Chery in a statement.
The French-Italian company posted first quarter earnings before interest and tax (EBIT) of $551 million, down 54% from a year earlier and below the $603.82 million expected by analysts in an LSEG poll.
Revenue fell 18% to $3.46 billion, missing analysts' expectations of $3.61 billion.
Weakness in auto and industrial demand have been weighing on the sector, while investors remain cautious amid high interest rates, with escalating tensions in the Middle East increasing fears.
(Reporting by Ozan Ergenay;Editing by Josephine Mason)
