Chip maker STMicroelectronics posts 1Q profit as revenue soars 40 percent

STMicroelectronics posts 1Q profit, revenue soars

GENEVA — STMicroelectronics NV posted a profit for the first quarter while revenue soared by 40 percent, as the economic recovery led to increased demand for its products across the board.

But the results fell short of analysts’ expectations and the company’s shares tumbled in after-hours trading.

The chip maker, whose semiconductors go into automotive, consumer, computer and communications products, earned $57 million, or 6 cents per share, in the quarter. Excluding one-time items, the company earned $62 million, or 7 cents per share.

In the prior year’s first quarter, STMicroelectronics lost $541 million, or 62 cents per share. Last year’s loss was inflated by a $232 million loss on equity investments.

Revenue rose to $2.33 billion from $1.66 billion.

But the company’s improved results nevertheless were below analysts’ expectations, according to Thomson Reuters. They were expecting a profit of 8 cents per share and revenue of $2.4 billion.

Looking ahead, STMicroelectronics expects revenue to increase by 6 percent to 12 percent in the second quarter from the first quarter. That comes to $2.45 billion to $2.59 billion. Analysts were expecting $2.5 billion.

The Swiss company’s American Depositary Shares fell 5 cents to close at $10.44 on Thursday before the release of the earnings report. In after-market trading, the shares fell 43 cents, or 4 percent, to $10.01.