European chipmaker STMicroelectronics beat expectations on Thursday for third quarter sales, helped by demand from the automotive sector. However, the company, whose clients include Tesla and Apple, said it expects a drop in sales in the fourth quarter.
Third quarter net revenues rose 2.5% year on year to $4.43 billion, beating the average of $4.38 billion expected by analysts in an Refinitiv poll.
“As expected, the revenue performance was driven mainly by continued growth in Automotive, partially offset by lower revenues in Personal Electronics,” said Jean-Marc Chery, the group’s Chief executive, in a statement.
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STMicro said it expects fourth quarter sales to fall about 3% year on year to $4.30 billion. Demand from car makers has helped the semiconductor sector offset the impact of US-China trade spats and sluggish demand for personal electronics.
However, auto manufactures are now saying that demand for electric vehicles (EVs) - a key growth driver - could be poised for a slowdown. STMicro on Thursday added it projects a gross margin of 46% in the fourth quarter, give or take 200 basis points.
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