STMicroelectronics outperformed in Q3, beating earnings and sales expectations. However, gross margins fell short of long-term targets, and full-year guidance missed expectations, resulting in a steep sell-off, despite strong semiconductor sector momentum. Investors are concerned about weaker sales outlook and lower-than-expected gross margins in Q3.

The company reported GAAP-adjusted earnings per share of $0.29, well above the $0.22 estimate. Revenue of $3.19 billion also exceeded expectations. Despite strong performance, the stock faced a significant sell-off due to lower-than-expected gross margins and cautious full-year sales guidance.

The midpoint guidance for full-year sales is $11.75 billion, slightly below the analyst estimate of $11.79 billion. Investors are wary of STMicroelectronics due to weaker sales outlook and lower gross margins. Q4 performance could impact results, but current sentiment is cautious.

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Read more at Yahoo Finance: Why STMicroelectronics Stock Plummeted Today