STMicroelectronics Tops Estimates With 24.4% YoY Increase in Q4 Revenue

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STMicroelectronics’ upbeat earnings resulted in a 9% jump in shares leading to a 52-week high of 43.10 euros on the EPA exchange.

Semiconductor manufacturer STMicroelectronics topped investors’ estimates by reporting stellar fourth-quarter net revenues of $4.42 billion, up 24.4% over the same period last year and 2.4% up on the previous quarter. Profit rose to $1.25 billion versus $750 million.

The company’s shares jumped as much as 9% to a 52-week high of 43.10 euros on the Euronext Paris (EPA) stock exchange after the company achieved its 2022 revenue target of $16.1 billion.

President and CEO, Jean-Marc Chery attributed the 26.4% increase to $16.13 billion, in FY22 revenue, to strong demand in the automotive and industrial sector, and ST’s engaged customer programs.

For the full year, the Automotive and Discrete Group (ADG) saw an increase in revenue of 38.4%. In comparison, the Microcontrollers and Digital ICs Group (MDG) grew 29.1% and the Analog, EMS, and Sensors Group (AMS) increased by 7%.

“Operating margin increased to 27.5% from 19% in FY21 and net income almost doubled to $3.96 billion. We invested $3.52 billion in capital expenditure while delivering free cash flow of $1.59 billion,” Chery added. The company plans to raise its capital expenditure from $3.52 billion in 2022 to $4 billion in 2023, primarily to increase manufacturing capacity.

The company expects strong demand and increased manufacturing capacity, to push its 2023 revenue to $16.8-$17.8 billion. STMicroelectronics intends to expand its revenues to $20 billion by 2027.

Chery shared his revenue estimates for the first quarter forecasting a target of $4.2 billion, an increase of 18.5% over the same period last year, but down by 5.1% sequentially, indicating the company’s susceptibility to market headwinds.

Headquartered in Plan-les-Ouates near Geneva, Switzerland and listed on the French stock market, STMicroelectronics is a leading semiconductor and integrated device manufacturer. The company claims to enable smarter mobility, more efficient power and energy management, and the wide-scale deployment of the Internet of Things and connectivity. The company is committed to becoming carbon-neutral by 2027.


 

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