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, an Associated Press report said.
'We were impressed with the revenue, operating, and earnings results given the continued negative impact of a stronger Euro and the uncertain economic environment,' Stifel Nicolaus analyst Cody Acree, quoted by the report, said.
The company posted adjusted earnings of â‚¬0.11 (US$0.18) per share. Analysts, on average, had expected a profit of â‚¬0.08 (US$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.