STMicroelectronics Q4 Results Beat View; Proposes To Reappoint CEO Jean-Marc Chery

(RTTNews) - STMicroelectronics (STM) reported that its fourth-quarter net income attributable to parent company increased to $582 million or $0.63 per share from $392 million or $0.43 per share in the year-ago quarter. Analysts polled by Thomson Reuters expected the company to report earnings of $0.56 per share for the fourth-quarter. Analysts' estimates typically exclude special items. Net revenues were $3.24 billion, representing a year-over-year increase of 17.5%. Analysts expected revenues of $3.14 billion for the fourth-quarter. On a year-over-year basis, the Company recorded higher net sales in all product groups except the RF Communications sub-group.

For 2021, the company plans to invest about $1.8 billion to $2.0 billion in CAPEX to support the strong market demand and strategic initiatives.

For the first quarter of 2021, at the mid-point, the company expects net revenues to be $2.93 billion, a decrease of 9.5% sequentially, plus or minus 350 basis points. Analysts expect revenues of $2.59 billion for the first-quarter.

In a separate press release, STMicroelectronics said its Supervisory board has asked the company president and chief executive officer, Jean-Marc Chery, to be available for a reappointment in his current role. Chery has accepted the proposal.

Therefore, the Supervisory Board has decided to propose for shareholder approval at the company's next Annual General Meeting of Shareholders, the reappointment for a three-year mandate of Jean-Marc Chery as the sole member of the Managing Board and the Company's President and Chief Executive Officer.