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STMicroelectronics’ shares soar 9% after Q4 results beat expectations

STMicroelectronics NV (STM) surpassed analysts’ expectations on revenue and earnings for the fourth quarter of 2018, sending shares soaring 9.5% in morning hours on Thursday. Net revenues grew 7.4% year-over-year to $2.65 billion, helped by double-digit growth across ADG, in Imaging and Digital. Sales to OEMs and Distribution rose by 8.9% and 4.1% respectively. Net […]

January 24, 2019 2 min read

STMicroelectronics NV (STM) surpassed analysts’ expectations on revenue and earnings for the fourth quarter of 2018, sending shares soaring 9.5% in morning hours on Thursday. Net revenues grew 7.4% year-over-year to $2.65 billion, helped by double-digit growth across ADG, in Imaging and Digital. Sales to OEMs and Distribution rose by 8.9% and 4.1% respectively. Net […]

· January 24, 2019

STMicroelectronics NV (STM) surpassed analysts’ expectations on revenue and earnings for the fourth quarter of 2018, sending shares soaring 9.5% in morning hours on Thursday.

Net revenues grew 7.4% year-over-year to $2.65 billion, helped by double-digit growth across ADG, in Imaging and Digital. Sales to OEMs and Distribution rose by 8.9% and 4.1% respectively.

Net income rose 35% to $418 million or $0.46 per share from the prior-year quarter.

The company recorded revenue increases across all its segments except Microcontrollers and Digital ICs Group (MDG) which fell 6.9% year-over-year. The Automotive and Discrete Group (ADG) delivered the highest growth of 17.8%, with double-digit growth in Automotive and Power Discrete.

In Analog, MEMS and Sensors Group (AMS), revenues grew 9.5% year-over-year. Within AMS, Imaging delivered double-digit revenue growth while Analog and MEMS saw growth in single-digits. Within the Microcontrollers and Digital ICs Group (MDG), Digital ICs saw double-digit revenue growth while Microcontrollers/Memories posted declines.

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STMicroelectronics stock tanks on weak outlook, despite Q3 beat

At the end of the quarter, inventory totaled $1.56 billion and day sales of inventory was 88 days. Capital expenditures totaled $279 million in the quarter.

For the first quarter of 2019, the company expects net revenues of about $2.1 billion at the midpoint, representing a year-over-year decline of about 5.7%. Gross margin is expected to be about 39%, plus or minus 200 basis points. For the full year of 2019, Capex is expected to total around $1.2 billion to $1.3 billion.

 

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