Dow Jones Newswires: STMicroelectronics net profit more than doubles on strong chip demand

Daily Trade

By Mauro Orru


STMicroelectronics NV on Thursday posted a surge in profit and revenue for the third quarter as demand for its portfolio of chips remained strong.

The European chip maker said net profit surged to $1.10 billion from $474 million in the third quarter last year.

Net revenue climbed to $4.32 billion from $3.20 billion.

Gross profit increased to $2.06 billion from $1.33 billion, with a gross margin of 47.6%, while operating income rose to $1.27 billion from $605 million with an operating margin of 29.4%.

STMicroelectronics had expected third-quarter net revenue of $4.24 billion at the midpoint, and a gross margin of about 47%.

For the fourth quarter, the company targets net revenue of $4.40 billion at the midpoint, and a gross margin of 47.3%.

“The midpoint of this outlook translates into full year 2022 net revenues of about $16.10 billion, representing a 26.2% year-over-year growth and gross margin of about 47.3%, in line with the plan we outlined in July,” STMicroelectronics Chief Executive Jean-Marc Chery said.


Write to Mauro Orru at [email protected]; @MauroOrru94


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