STMicroelectronics Stock Up On Upbeat Q4 Results, CEO Re-appointment

(RTTNews) - Shares of STMicroelectronics were gaining in Paris trading as well as in the pre-market activity on the NYSE, after the semiconductor manufacturer reported Thursday higher profit and revenues for its fourth quarter that beat analysts' estimates.

Separately, the company announced that its President and Chief Executive Officer Jean-Marc Chery has accepted Supervisory board's proposal to be available for re-appointment in his current roles for further three years. The Supervisory Board will propose the re-appointment for shareholder approval at the next Annual General Meeting of Shareholders.

Looking ahead 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 percent sequentially, plus or minus 350 basis points. Analysts expect revenues of $2.59 billion for the first-quarter. Gross margin is expected to be about 38.5 percent, plus or minus 200 basis points.

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 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 percent from $2.75 billion. Analysts expected revenues of $3.14 billion for the fourth-quarter.

Sequentially, net profit surged 140 percent and net revenues grew 21.3 percent from the preceding third quarter.

On a year-over-year basis, the company recorded higher net sales in all product groups except the RF Communications sub-group.

In Paris, STMicroelectronics shares were trading at 33.48 euros, up 5.55 percent. In pre-market activity on the NYSE, the shares were gaining 7 percent at $40.55.