- The company reported a net income of $1.04 billion or $1.10 diluted earnings per share.
- CEO Jean-Marc Chery attributed the revenue report to a better-than-expected performance in the automotive and industrial sectors.
- The chipmaker forecast a net revenue of $4.28 billion for the second quarter.
European chip manufacturer STMicroelectronics reported impressive results for the first quarter with a 20% year-on-year increase in net revenue to $4.25 billion, with a boost from the automotive sector. On a quarterly basis, net revenues fell by 4%.
The company topped analysts’ estimates by reporting a net income of $1.04 billion or $1.10 diluted earnings per share, compared to $0.75 billion and $0.79 respectively, in the year-ago quarter.
President and CEO Jean-Marc Chery attributed the revenue report to an exceptional performance in the automotive and industrial sectors but added that the results were partially offset by lower revenues in personal electronics.
“This performance was driven by better-than-expected results in ADG on continued strength in Automotive, and in MDG with General Purpose Microcontrollers remaining strong in Q1,” said Chery.
On a year-over-year basis, the revenue from the automotive and discrete group (ADG) and microcontrollers and digital ICs group, increased by 43.9% and 13.2%, respectively. In contrast, analog, MEMS and sensors group (AMS) revenue decreased by 0.9%. The company said that revenue in the AMS sector fell by 20.3% quarterly, reflecting lower-than-expected revenue in personal electronics on top of seasonality.
The chipmaker forecast a net revenue of $4.28 billion for the second quarter. Chery said STMicro was aiming for full-year revenue of $17 billion to $17.8 billion, keeping it on course for its target of $20 billion by 2027.
On the analyst call, Chery said, “STMicroelectronics sees revenue growing by 5% to 10% this year despite a complex environment. Automotive and industrial divisions will continue to drive growth.”