Barclays: The outlook for STMicroelectronics is better than expected

Barclays capital analysts wrote in a report that STMicroelectronics is expected to have higher sales in the second quarter than the market expects. The European chip manufacturer predicts revenue for the current quarter to be around $3.45 billion, higher than Visible Alpha's estimate of $3.18 billion. Its gross margin is expected to be around 34.8%, compared to 33.5% in the same period last year. "Given the rise in prices and expected growth, some may question why the gross margin is not higher, but we believe that the strong revenue momentum today will overshadow this," the analysts said. STMicroelectronics' stock price rose 8% to 40.47 euros.