FLASH: STM Guides Down

Reports Q3 (Sep) earnings of $0.09 per share, excluding non-recurring items, $0.01 worse than the Capital IQ Consensus Estimate of $0.10; revenues fell 8.1% year/year to $2.44 bln vs the $2.49 bln consensus. Co issues downside guidance for Q4, sees Q4 revs of $2.15-2.30 bln vs. $2.55 bln Capital IQ Consensus Estimate. Regarding guidance, co said, “Reflecting both revenue and a higher level of unsaturation at our facilities as we make further adjustments to reduce inventory, we anticipate a gross margin range of about 33.5%, plus or minus 1.5 percentage points. We anticipate that 2011 will still be a year of revenue and operating income growth in several businesses, in particular Automotive and MEMS, despite the weaker second half. As evidenced by our year-to-date results, we continue to build on the progress achieved over the course of the last two years in expanding our customer base, introducing new products and focusing on our target growth markets.”