NEW YORK (TheStreet) -- Shares of STMicroelectronics (STM) - Get STMicroelectronics NV Report were falling 10.2% to $6.49 Wednesday after missing analysts' estimates for revenue in the third quarter, and warning that it expects lower revenue fourth quarter.
The chipmaker reported earnings of 13 cents a share for the third quarter, beating the Capital IQ Consensus Estimate of 5 cents a share by 8 cents. Revenue fell 6% year over year to $1.89 billion for the quarter, below analysts' estimates of $1.93 billion.
STMicroelectronics said it expects revenue to fall about 3.5% in the fourth quarter on a sequential basis, plus or minus 3.5 percentage points, which implies a range of $1.76 billion to $1.89 billion for the quarter. Analysts expect revenue of $2.01 billion for the quarter.
TheStreet Ratings team rates STMICROELECTRONICS NV as a Hold with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:
"We rate STMICROELECTRONICS NV (STM) a HOLD. The primary factors that have impacted our rating are mixed ? some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its impressive record of earnings per share growth, compelling growth in net income and largely solid financial position with reasonable debt levels by most measures. However, as a counter to these strengths, we find that the stock has had a generally disappointing performance in the past year."
You can view the full analysis from the report here: STM Ratings Report