STMicroelectronics Q3 Profit Surges - Quick Facts

(RTTNews) - STMicroelectronics NV (STM), a semiconductor company, reported that its third-quarter net income attributable to parent company surged to $236 million or $0.26 per share from $71 million or $0.08 per share in the year-ago period.

Operating income for the quarter grew to $278 million from $90 million in the year-ago period. Operating income before impairment and restructuring charges was $292 million, up from $119 million in the prior-year period.

Third-quarter net revenues rose 18.9 percent to $2.14 billion from $1.80 billion last year.

On average, analysts polled by Thomson Reuters expected the company to report earnings of $0.25 per share on revenues of $2.09 billion for the quarter. Analysts' estimates typically exclude special items.

According to the company, all product groups recorded double-digit year-over-year revenue growth, driven by strong demand across all geographies in the company's focus application areas of Internet of Things, Smartphones, Industrial and Smart Driving.

Looking ahead to the fourth quarter, the company expects revenues to increase about 10.0 percent on a sequential basis, plus or minus 3.5 percentage points. Gross margin in the fourth quarter is expected to be about 39.9 percent plus or minus 2.0 percentage points.

For fiscal 2017, STMicroelectronics expects net revenues to grow year-over-year by about 18.0 percent, accompanied by a substantial improvement in operating profitability and net income.