STMicroelectronics: Q1 results below forecasts, but Q2 on track as the environment improves

STMicroelectronics has reported Q1 2016 sales slightly below estimates and EPS below consensus. The group has posted Q1 sales of USD1.613bn, down 3.3% seq., with a gross margin stable at 33.4% and EPS of -USD0.05, below consensus expectations (cons. USD0.00, BG ests. -USD0.02). Q2 2016 guidance is broadly in line with estimates with revenues set to rebound 5.5% (+/- 350bp) sequentially, i.e. sales close to USD1.702bn, while current forecasts were for USD1.710bn (BG ests. USD1,702m).