STMicroelectronics Q4 Net Income Rises; Net Revenues Up 24.4%

(RTTNews) - STMicroelectronics (STM) reported that its fourth quarter net income increased to $1.25 billion, including a one-time non-cash income tax benefit of $141 million, compared to $750 million, prior year. Earnings per share increased to $1.32 from $0.82. On average, eight analysts polled by Thomson Reuters expected the company to report profit per share of $1.13, for the quarter. Analysts' estimates typically exclude special items.

Gross margin was 47.5%, increased 230 basis points year-over-year, principally due to favorable pricing, improved product mix, positive currency effects, net of hedging, partially offset by the inflation of manufacturing input costs.

Net revenues were $4.42 billion, a year-over-year increase of 24.4%. On a year-over-year basis, the company recorded higher net sales in all product groups and sub-groups except the Analog and MEMS sub-groups. Analysts on average had estimated $4.41 billion in revenue.

For the first quarter, at the mid-point, the company expects: net revenues to be $4.20 billion, a decrease of 5.1% sequentially, plus or minus 350 basis points; gross margin of 48.0%, plus or minus 200 basis points.

STMicroelectronics said, based on strong customer demand and increased manufacturing capacity, it will drive the company based on a plan for fiscal 2023 revenues in the range of $16.8 billion to $17.8 billion. For 2023, the company plans to invest about $4.0 billion in CAPEX.

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