STMicroelectronics targets 26% growth in revenue to $16 bn

Chipmaker STMicroelectronics reported third quarter revenues of $4.32 billion (+35.2 percent), gross margin of 47.6 percent, operating margin of 29.4 percent, and net income of $1.10 billion for the third quarter ended October 1, 2022.
STMicroelectronics jobSTMicroelectronics said it has generated revenue of $1.563 billion (+55.5 percent) from Automotive and Discrete Group (ADG) business, $1.38 billion (+9.7 percent) from Analog, MEMS and Sensors Group (AMS) and $1.374 billion (+47.7 percent) from the Microcontrollers and Digital ICs Group (MDG) in Q3 2022.

STMicroelectronics said its sales growth to slow in the last part of the year. Q4 revenues are expected to be $4.40 billion, an increase of 1.8 percent sequentially, plus or minus 350 basis points; Gross margin of 47.3 percent, plus or minus 200 basis points, STMicroelectronics said.

STMicro today announced it expected full-year net revenue to amount to $16.1 billion, up 26 percent from a year earlier, as well as a gross margin of about 47.3 percent, in line with its previously announced guidance.

The Geneva-based company’s clients include iPhone maker Apple and carmaker Tesla.

STMicroelectronics is confident it can deliver on its full-year targets, helped by a diversified set of products, ranging from sensors for the smartphone industry to chips aimed at improving power management in autonomous and electric vehicles.

Jean-Marc Chery, STMicroelectronics President & CEO, said: “The midpoint of our outlook translates into full year 2022 revenues of about $16.10 billion, representing a 26.2 percent year-over-year growth and gross margin of about 47.3 percent, in line with the plan we outlined in July.”

Bigger rival Texas Instruments earlier this week that it expected demand across most of its end markets to decline.

South Korea’s SK Hynix warned of an unprecedented deterioration in memory chip demand and will cut its Capex.

STMicroelectronics said capital expenditure, net of proceeds from sales, were $955 million in the third quarter and $2.61 billion for the year-to-date period. In the year-ago quarter, capital expenditures, net, were $437 million.