STMicroelectronics (NYSE:STM) shares tumbled after the semiconductor company reported an earnings miss for the second quarter, as its profits took a hit from significant one-time expenses.
Earnings per share of $0.06 were down from $0.38 in the year-ago quarter and missed Wall Street estimates of $0.10.
Revenue of $2.77 billion, above the midpoint of the company’s guidance but representing a 14.4% year-over-year decline, was slightly ahead of the $2.72 billion consensus.
This included $190 million in impairment, restructuring charges, and related phase-out costs.
For Q3, the company guided revenue of $3.17 billion, which presents a 2.5% year-over-year decrease but 14.6% sequential improvement.
“While we expect Q3 revenues to show a solid sequential growth enabling a continued year-over-year improvement, we are still operating amid an uncertain macroeconomic environment,” ST Microelectronics CEO Jean-Marc Chery said in a statement.
“Given these external factors, our priorities remain supporting our customers, accelerating new product introductions, and executing our company-wide program to reshape our manufacturing footprint and resize our global cost base.”
Shares of STMicroelectronics fell 16.3% just shy of $27 on Thursday morning.