(News Bulletin 247) – The semiconductor manufacturer is benefiting from the results considered reassuring by its American competitor.

In the semiconductor sector, the presence on the stock market of a large number of players located at different levels of the production chain (founders, manufacturers of equipment, substrates, chips, etc.) makes “cross-reading” frequent.

As a reminder, “cross-reading” occurs when investors analyze a company’s publication and deduce lessons for another company in the same sector.

Where applicable with STMicroelectronics. The Franco-Italian semiconductor specialist climbed 2.6% early this Wednesday afternoon, signing the second largest increase in the CAC 40.

The company is buoyed by the results of a competitor, in this case the American Texas Instruments, which also gained 3.35% in pre-opening on Wall Street.

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The rebound in question

In the third quarter, the American company’s revenues stood at $4.15 billion, down 8% year-on-year, while profit fell 20%.

The company also expects revenues of between $3.7 billion and $4 billion for the fourth quarter and earnings per share of between $1.07 and $1.29. Which is, admittedly, far from the Bloomberg consensus, which stood at $4.08 billion for revenues and $1.35 for earnings per share.

“In detail, the results of Texas Instruments were in line with analysts’ forecasts while the forecasts turned out to be quite significantly lower than these same forecasts. But investors expected much worse in terms of the outlook,” explains Stéphane Houri, analyst at Oddo BHF. “In addition, Texas Instrument highlighted that the automotive segment in China was not bad in the quarter,” he adds.

“There can therefore be a positive cross-reading of this publication for STMicroelectronics, even if we must be careful of readings that are too rapid,” concludes the analyst.

STMicroelectronics will report its third quarter results on October 31. Stifel expects the release to show a slight improvement from a trough in activity reached in the second quarter. But the research office also estimates that the recovery should remain timid at the end of 2024.

Investors will likely await comments from management on a potential rebound in 2025 in the company’s various market segments, notably automotive.

At the beginning of the month, UBS explained, for its part, that the third quarter results should illustrate “a longer-than-expected bottom of the cycle” for the company. The Swiss bank is also counting on a recovery in the company’s activity next year, but which would be concentrated in the second half of the year.