Europe Movers: STMicroelectronics, Sartorius, SAP
- Bridgette Randall
- Germany Frankfurt
-
SAP reported a sharp drop in quarterly earnings and said it plans to cut its staff and sell its stake in Qualtrics. STMicroelectronics reported a jump in earnings and revenues and healthy margins.
STMicroelectronics soared 8.2% to €42.68 after the advanced semiconductor equipment maker reported better-than-expected earnings.
Fourth quarter revenue increased 24.4% to $4.4 billion and net income soared 66.4% to $1.25 billion from $750 million a year ago.
Diluted earnings per share rose to $1.32 from 82 cents a year ago.
The company guided first quarter revenue to increase 18.5% from a year ago and decline 5.1% from the previous quarter to $4.2 billion.
The equipment maker estimated a gross margin of 48.0% and capital expenditure in 2023 of $4.0 billion.
Sartorius AG increased 3.6% to €354.0 after the biotech holding company reported stronger-than-expected financial results.
Fiscal 2022 revenue increased 21% or 15% in constant currencies to €4.1 billion.
The company benefited from orders related to Covid-19 and underlying operating earnings rose 20% to €1.4 billion and operating margin declined to 33.8% from 34.1% in the prior year.
The company guided 2023 consolidated revenue to increase in the " low single-digit percentage range."
SAP SE declined 0.9% to close at €105.0 after the software company reported a sharp decline in profit.
Revenue in the December quarter increased 6% to €8.4 billion from €7.98 billion a year ago.
Net income plunged 77% to €332 million from €1.4 billion and diluted earnings per share dropped 66% to 47 euro cents from €1.23 a year ago.
The company also confirmed that it is looking to sell its stake in Qualtrics.
The company also plans to reduce its current workforce of 110,000 by 2.5% or about 3,000 and take a restructuring charge between €250 million and €300 million.
Annual Returns
| Company | Ticker | 2025 | 2024 | 2023 |
|---|---|---|---|---|
| STMicroelectronics N V | STM | -4% | -50% | 29% |
| SAP SE | SAP | -2% | 61% | 43% |