STMicroelectronics jumps after solid Q2 results

25 Jul 2008

(Associated Press via NewsEdge) US-traded shares of STMicroelectronics jumped after the Switzerland-based chip maker posted a smaller second-quarter loss and, excluding items, adjusted earnings above Wall Street's expectations.

'We were impressed with the revenue, operating, and earnings results given the continued negative impact of a stronger Euro and the uncertain economic environment,' wrote Stifel Nicolaus analyst Cody Acree in a note to investors, keeping a 'Buy' rating on the stock.

The company posted adjusted earnings of $0.18 per share. Analysts, on average, had expected a profit of $0.14 per share, according to a poll by Thomson Financial.

Citi Investment Research analyst Glen Yeung called the quarter's results 'solid,' but not enough to change his 'Hold' rating.

Yeung said in a note to investors that ST's strength in its telecom business, which grew 14% quarter-over-quarter, was in 'stark contrast' to rival Texas Instruments, which posted a 2% decline in second-quarter wireless revenue. Texas Instruments posted second-quarter results below Wall Street's expectations Monday.

© 2008 The Associated Press

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