STMicroelectronics profit misses estimates, shares fall 14%

Second-quarter earnings before interest, taxes, depreciation and amortisation came in at $679 million, well below market expectations of $797.7 million.

The misses overshadowed a second-quarter revenue beat and management's optimistic outlook for AI-related data centres and low-Earth-orbit satellite communications.

The company said the profit hit came from impairment, restructuring and other phase-out costs, as well as accounting effects from its acquisition of an NXP sensor business.

"During the quarter demand increased further, with strong bookings in all end markets. We saw improved visibility and signs of tight supply in several product categories," Chief Executive Jean-Marc Chery said in a statement.

"We anticipate a revenue growth acceleration in Q4, mainly driven by our engaged customer programs in AI datacenters and LEO satellite communication. We expect Q4 revenues to be above $4 billion," he added.