STMicroelectronics Tops Q4 Consensus; Issues Positive Q1 Outlook

January 29, 2022Updated: January 29, 2022

STMicroelectronics NV reported fourth-quarter FY21 revenue growth of 9.9 percent year-on-year to $3.56 billion, beating the consensus of $3.46 billion. Sales to OEMs remain unchanged, and Distribution sales improved 38.7 percent Y/Y.

Automotive and Discrete Group (ADG) revenue rose 28.6 percent Y/Y to $1.23 billion. Analog, MEMS, and Sensors Group (AMS) revenue declined 11.2 percent Y/Y to $1.26 billion. Microcontrollers and Digital ICs Group (MDG) revenue grew 23.7 percent Y/Y to $1.06 billion.

The gross margin expanded 640 bps to 45.2 percent. Improved product mix, manufacturing efficiencies, favorable pricing drove the margin.

The operating margin expanded by 460 bps to 24.9 percent.

EPS of $0.82 beat the consensus of $0.68.

STMicroelectronics generated $881 million in operating cash flow and held $3.52 billion in cash and equivalents.

STMicroelectronics sees Q1 FY22 revenue of $3.50 billion, a decrease of 1.6 percent sequentially, plus or minus 350 basis points.

STMicroelectronics sees a gross margin of 45.0 percent, plus or minus 200 basis points.

By Anusuya Lahiri

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